o^-b-b^ 


33 


QARRETni^^AL  INSTfTUT: 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/17921892onehundr00woodiala 


HARTFDRLl     NATIONAL    BANK, 


SB    State    StrEEt, 


HflHTFDRn,    CDNN. 


33; 


^jj^9^  1892 

ONE  HUNDRED  YEARS 

OF    THE 

HARTFORD    BANK 

NOW 

THE    HARTFORD    NATIONAL    BANK 

OF 

Hartford,  Conn. 

PREPARED  AT  THE  REQUEST  OF  THE  PRESIDENT  AND  DIRECTORS 

P.   H,   WOODWARD       ^ 


HARTFORD,  CONN. 

Press  of  The  Case,  Lockwood  &  Brainard  Company 

1892 


'*• 


PREFATORY 


This  volume  was  prepared  at  the  request  of  the  presi- 
dent and  directors  of  the  Hartford  National  Bank,  in  antici- 
pation of  its  one  hundredth  anniversary,  June  14,  1892. 
Without  taking  space  to  enumerate  the  books  to  be  found 
in  every  well-equipped  library,  the  writer  wishes  here  to 
express  his  obligations  to  those  who  in  various  ways  have 
kindly  aided  him.  Most  of  the  facts  in  regard  to  Col. 
Jeremiah  Wadsworth  were  derived  directly  or  indirectly 
from  Jonathan  F.  Morris.  Much  assistance  has  been  drawn 
from  a  series  of  able  and  accurate  papers  on  "  Currency 
and  Banking  in  Connecticut,"  prepared  by  Joseph  G. 
Woodward,  and  printed  in  the  Coiirant  during  1876. 
For  valuable  suggestions  and  for  the  loan  of  rare  books 
and  pamphlets,  the  writer  is  under  special  obligations  to 
Sherman  W.  Adams,  whose  library  is  exhaustive  in  most 
matters  pertaining  to  Connecticut.  Charles  J.  Hoadly  has 
made  liberal  contributions  from  his  vast  and  varied  stores. 
Other  facts  were  furnished  by  Nathan  Starkweather.  Clerks 
at  the  Capitol  have  shown  unfailing  courtesy  in  hunting  for 
ancient  accounts  and  papers.  John  W.  Stedman,  president 
of  the  Connecticut  Historical  Society;  Frank  B.  Gay,  of  the 
Watkinson  Library;  and  Miss  C.  M.  Hewins,  of  the  Hartford 
Library  Association,  have  been  specially  helpful.  Others  also, 
by  furnishing  old  manuscripts  and  by  showing  a  generous 
interest  in  the  work,  have  contributed  to  make   the  task  a 

pleasure. 

P.  H.  W. 
Hartford,  Conn.,  March  22,  1892. 


ID 


TABLE    OF    CONTENTS 


CHAPTER  I 


PAGE 

Organization 9 

The  hundredth  anniversary — Relative  age — Prosperity  of  the 
colonies  before  the  Revolution  —  Experiences  with  fiat  money  — 
Deplorable  condition  of  the  people  after  the  war  — "  The  curse 
of  barter" — Early  steps  to  secure  a  bank  — A  charter  obtained 
—  Its  provisions — The  bank  organized  June  14,  1792 — Rules 
adopted. 


CHAPTER   n 
The   Situation  in   1792 22 

Financial  measures  of  Alexander  Hamilton  and  their  effects 
—  Hartford  a  provincial  village  in  1792  —  Streets  —  Agriculture  and 
trade  —  Manufactures  —  Mail  facilities,  wealth,  and  taxation  —  A 
leading  literary  center  —  Social  phases. 


CHAPTER  HI 
The   Founders .        31 

Jeremiah  Wadsworth,  John  Caldwell,  John  Morgan,  George 
Phillips,  Barnabas  Deane,  Timothy  Burr,  James  Watson,  Caleb 
Bull,  Ephraim  Root,  Oliver  Ellsworth,  John  Trumbull,  Chauncey 
Goodrich,  Enoch  Perkins,  Hudson  &  Goodwin  of  the  Courant, 
Nehemiah  Hubbard,  Oliver  Phelps,  Noah  Webster,  Thomas 
Tisdall,  Peleg  Sanford,  Jacob  Ogden,  Ezekiel  Williams,  Jr., 
Amasa  Keyes,  James  Burr,  John  Chenevard,  Elisha  Colt,  Chas. 
Hopkins,   Daniel  Wadsworth. 

(5) 


5  CONTENTS 

CHAPTER  IV 
Early  Incidents  and   Progress 57 

Early  quarters,  vault  and  safe  —  The  burglar  and  the 
iron  door  —  Scarcity  of  currency  —  Its  motley  character  —  A 
church  subscription  paper  of  1786  — Of  what  did  the  early  assets 
consist-* — The  bank  first  introduces  the  decimal  system  in  Con- 
necticut—Schoolmasters speak  —  Esoteric  rules  — First  Bank  dis- 
count of  Connecticut  —  Distrust  of  bank  notes  —  State  indents  — 
Confidence  won  —  The  engraved  plates  —  Influence  of  the  bank 
coterie  in  the  sale  of  the  "Western  reserve" — Salary  of  the  cashier 
—  Capital  increased  —  Normand  Knox,  cashier  —  Counterfeiting  — 
Laborious  transition  from  farm  to  town. 

CHAPTER  V 
Occupancy   Exclusive  but  Beneficent        ...        79 

Business  activity  stimulated  and  broadened  —  Connecticut 
becomes  a  stockholder  —  Introductory  supervision  —  Further  en- 
largement of  capital  —  Tempting  offers  to  religious  societies  and 
to  educational  and  charitable  incorporations  —  Distribution  of 
premiums  and  disregard  of  surplus  —  Unjust  conditions  — 
Lessons  in  punctuality  —  Beginnings  of  local  underwriting,  fire 
and  marine  —  The  West  India  trade  —  The  first  chartered  in- 
surance company  —  Results  of  the  embargo  of  1807,  and  of  the 
non-intercourse  acts — The  Hartford  and  New  Haven  Turnpike 
Company  —  Occupation  of  the  present  bank  building. 

CHAPTER  VI 
A   Rival   and  a   Revolution  —  War  and   Panic         .         99 

Widespread  confidence  in  the  bank  —  Resistance  to  the  es- 
tablishment of  a  rival  —  Warning  from  "  Probus"  —  Charter  of 
Phoenix  Bank  —  Quarrel  over  the  disposition  of  the  bonus  — Rise 
of  the  "toleration"  party — Its  constituent  elements  —  Its  success 
— The  constitution  of  1638-9  —  The  charter  of  1662  —  Union  of 
Church  and  State  —  Sundry  concessions  —  Imperfect  separation 
of  legislative  and  judicial  powers  — The  upper  house  a  self  per- 
petuating oligarchy  —  The  constitution  of  1818  — Horace  Burr  suc- 
ceeds Normand  Knox  as  cashier  —  Financial  follies  of  the 
Middle  and  Southern  States  during  the  war  of  1812 — The 
United  States  Bank  retired  —  Reckless  creation  of  new  banks  — 
New  England  escapes  the  infatuation  and  profits  accordingly  — 
Unpopularity  of  the  war  at  the  East— Wise  conservatism  of  our 
banks— Post  notes  authorized  —  Outpouring  of  "shin  plasters" — 
Peace  —  Connecticut  bankers  vainly  try  "  to  persuade  or  compel " 
New  York  banks  to  resume  —  Struggles  for  a  sound  currency  — 
Par  of  shares  made  $100— Industrial  distress — The  second  Bank 
of  the  United  States  —  The  crisis  of  1819  —  Retirement  of  Presi- 
dent CaldwelL 


CONTENTS  7 

CHAPTER  VII 
The   Second   Generation 125 

Reefing  sails  — Gen'l  Nathaniel  Terry,  second  president  — 
Depression  of  1820-1 — Another  step  in  supervision — The  city- 
watch  —  Employes  must  not  trade  or  speculate— Courtesies  to  the 
United  States  branch  bank  — English  panic  of  1825  — Failure  of 
the  Eagle  Bank  of  New  Haven,  and  of  the  Derby  Bank  — Hart- 
ford and  the  "Boston  Alliance  "— Joseph  Trumbull  elected  presi- 
dent —  The  Hinsdale  defalcation  —  Mild  adversities  —  Cashier 
Burr  exonerated  and  succeeded  by  Henry  A.  Perkins  — The 
man  for  the  emergency  —  Sworn  statement  before  and  after  — 
Dividends  suspended  —  A  stockholder  wants  "her  interest" — An 
overdrawn  account  —  Resumption  of  regular  dividends  —  More 
legislation  —  The  first  State  committee  of  examination  —  Action 
of  the  bank  —  A  board  of  bank  commissioners  created  —  Its  cool 
reception  at  first  —  Panic  of  1837  —  Stand  taken  by  the  banks  of 
Hartford  —  Sound  condition  of  the  banks  of  Connecticut  —  Fail- 
ures elsewhere  —  Exact  methods  of  the  cashier  —  Illustrative 
anecdote  —  The  State  and  borrowing  directors— David  F.  Robin- 
son elected  president  —  Book  manufacture  —  Collapse  of  United 
States  Bank  No.  3  —  Comparative  results  of  sound  and  unsound 
methods  —  Effect  of  railways  upon  the  trade  of  Hartford  with 
the  upper  Connecticut  valley  —  Fall  of  the  stage  coach  and  of 
the  country  inn  —  Liberated  capital  applied  to  insurance  and 
banking  —  Retirement  of  Mr.  Robinson. 

CHAPTER   VIII 
The   Past   Forty  Years 154 

Henry    A.   Perkins    elected    president  —  Corporate    economy 

—  Utilizing    letter-margins  —  A.   G.    Hammond    appointed  cashier 

—  George  Ripley  succeeds  him  —  Panic  of  1857  —  The  Hartford 
Bank  unscathed  —  James  Bolter  made  cashier — War  subscrip- 
tions —  Enters  the  National  system  —  Death  of  Mr.  Perkins  — 
A  typical  Puritan  —  James  Bolter  accepts  the  presidency  —  W.  S. 
Bridgman,  cashier  —  Panic  of  1873  — Its  length  and  severity  — 
Uninterrupted  prosperity  of  the  bank  — The  building  modern- 
ized—  The  capital    increased   to   $1,200,000  —  Aggregate    dividends 

—  President  Bolter  —  Risumi  —  Volume  of  assets  owned  and  held 
in  trust  by  Hartford  banks  and  insurance  companies  —  Manu- 
facturers —  Conclusion. 

Appendix 167 

List  of  the  executive  officers  of  the  bank  since  1792  — 
List  of  directors  from  1792  —  List  of  original  subscribers  — 
Officers  and  employes  in  1892. 


HISTORY 

OF 

The  Hartford   Bank 


CHAPTER   I 
ORGANIZATION 


IT  HAS  fallen  to  the  lot  of  the  present  genera- 
tion to  celebrate  the  one  hundredth  anniversary 

of  many  memorable  events  in  American  history. 
Not  only  with  noise  and  pomp  and  other  outward 
demonstrations  of  rejoicing,  but  also  with  diligent 
study  the  men  and  women  of  to-day  have  recalled 
the  revolutionary  struggle  from  the  first  gun  at 
Concord  to  the  establishment  of  the  federal  union 
in  1789. 

And  now  having  rounded  a  full  century,  the 
Hartford  (National)  Bank,  the  oldest  financial  insti- 
tution in  the  city,  and  with  the  exception  of  the 
Union  Bank  of  New  London,  which  was  chartered 
at  the  same  session  of  the  General  Assembly,  the 
oldest  in  Connecticut,  turns  aside  from  the  beaten 
track  to  review  the  work  of  the  long  procession  of 
officers  and  managers  who  have  linked  its  name 
with   enduring   associations   of    honor   and    strength. 


jQ  HISTORY    OF 

Only  four  State  banks  antedate  the  Hartford: 
the  Bank  of  North  America,  of  Philadelphia,  incor- 
porated by  an  ordinance  of  the  Continental  Con- 
gress, Dec.  31,  1 78 1,  and  chartered  by  Pennsylvania 
in  March,  1 782 ;  the  Bank  of  New  York,  organized 
and  in  active  operation  in  1784,  but  unable  to  secure 
a  charter  till  March  21,  1791  ;  the  Bank  of  Massa- 
chusetts, chartered  Feb.  7,  1784;  and  the  Providence 
Bank,  which  began  business  in  October,  1791. 

To  appreciate  the  changes  wrought  in  the  meth- 
ods of  business,  and  the  benefits  arising  from  the 
formation  of  the  bank,  one  must  know  the  situation 
of  affairs  when  it  was  called  into  being. 

At  the  outbreak  of  the  Revolution  the  colonies 
were  prosperous.  The  meddlesome  and  repressive 
legislation  of  Great  Britain,  while  irritating  the  pas- 
sions, failed  to  check  the  industrial  energies  of  the 
people.  A  virgin  soil  yielded  a  handsome  surplus 
for  export.  A  long  coast  line  indented  with  land- 
locked harbors  tempted  the  commercial  spirit  to 
seek  adventure  and  wealth  upon  the  sea.  Ship- 
building brought  technical  skill  and  riches  to  the 
builder.  Manufactures  sprang  up  in  spite  of  Brit- 
ish jealousy.  Political  leaders,  impatient  of  inter- 
ference and  dictation  from  a  court  thousands  of 
miles  away,  were  intoxicated  by  the  signs  of  abun- 
dance on  every  side.  From  this,  in  part,  the  brave 
words  of  Adams  and  Hancock  and  Henry  drew  their 
inspiration. 

In  ignorance  of  economic  laws  our  fathers  under- 


THE     HARTFORD    BANK  n 

took  to  achieve  independence  with  fiat  money.  As 
John  Law  had  taught  before,  as  the  promoters  of  the 
French  Revolution  taught  afterwards,  they  doubted 
not  that  houses  and  lands  and  the  boundless  possi- 
bilities of  the  continent  afforded  a  solid  foundation 
for  all  the  paper  currency  the  wisdom  of  Congress 
might  see  fit  to  emit.  No  repetition  of  bitter  expe- 
riences seems  able  to  exterminate  the  error.  On  the 
prairies  of  the  West  it  flourishes  to-day  in  all  the 
luxuriance  that  might  be  expected  in  the  case  of 
a  new  and  untried   experiment. 

In  June,  1775,  Congress  voted  to  issue  bills  of 
credit  not  exceeding  two  millions  Spanish  milled 
dollars.  Late  in  July  another  million  was  added. 
Thenceforth  till  near  the  close  of  1779  the  printing- 
press  found  no  rest.  Meantime,  over  $200,000,000 
had  been  thrown  into  circulation,  and  as  the  vol- 
ume increased  its  purchasing  power  fell  toward  zero. 
The  bill  passed  March  18,  1780,  for  the  redemption  of 
the  old  issues  in  ''new  tenor"  at  the  rate  of  forty 
for  one  only  precipitated  the  collapse.  The  mass  of 
paper  afloat  retained  a  dubious  fraction  of  value  till 
August  or  September,  1781,  when  its  worthlessness 
was  conceded,  and  the  stuff  ceased  to  play  any  fur- 
ther part  either  in  the  operations  of  government  or 
in  the  exchanges  of  trade.  Gold  and  silver  came 
out  from  many  hiding  places.  The  French  and 
English  armies  disbursed  large  sums  in  coin.  An 
active  trade  with  Havana  brought  in  Mexican  dol- 
lars   by   thousands.      Once   more    traffic   was   carried 


12 


HISTORY    OF 


on  in  the  precious  metals  to  the  astonishment  and 
delight  of  every  one  except  the  enemy,  who  had 
come  to  base  the  hope  of  ultimate  triumph  in  sub- 
duing the  revolt  more  upon  failure  of  the  currency 
than  upon  success  in  arms.  Specie  supplied  the 
sinews  of  war  for  the  final  campaigns  of  the  Revo- 
lution. 

Peace  did  not  usher  in  prosperity.  For  eight 
weary  years  the  brain  and  muscle  of  the  confedera- 
tion had  been  withdrawn  in  great  measure  from  the 
work  of  production.  Armies  had  desolated  broad 
areas.  British  cruisers  had  destroyed  the  carrying 
trade  and  cut  off  the  profits  of  the  fisheries.  Colonial 
estates  which  had  furnished  loans  to  the  enterprising, 
were,  in  many  cases,  wiped  out  of  existence  by 
repayments  in  almost  worthless  paper  currency.  By 
stimulating  speculation  and  gambling,  the  inflation 
had  also  unsettled  the  old  habits  of  industry.  With 
peace  came  heavy  importations  of  foreign  goods, 
which  drained  the  country  of  coin,  for  the  waste  of 
war  left  no  other  exportable  commodity.  Money  was 
scarce,  rates  of  interest  high,  and  the  spirit  of  enter- 
prise, always  so  characteristic  of  Americans,  could 
seize  hardly  a  foothold  for  undertakings  which  tanta- 
lized the  imagination  by  the  allurement  of  profits 
that  lay   just  beyond   the   grasp. 

After  the  withdrawal  of  the  common  enemy  the 
thirteen  states,  loosely  held  together  by  the  articles 
of  confederation,  began  to  wage  commercial  war 
against  each   other.      New  York,   for  instance,  under 


THE     HARTFORD     BANK  j^ 

the  narrow  leadership  of  Governor  Clinton,  levied  a 
tariff  upon  supplies  from  the  farms  of  Connecticut 
and  the  gardens  of  New  Jersey.  The  distress  and 
anxiety  caused  by  the  collisions  of  petty  sovereign- 
ties, not  less  than  the  perils  to  be  apprehended  from 
the  poverty  and  weakness  of  the  central  government, 
forced  the  calling  of  the  convention  of  1787.  Little 
good  was  anticipated  from  the  experiment.  Previous 
attempts  to  form  a  union  had  failed.  Antipathies 
growing  out  of  mutual  irritations  seemed  to  render 
the  last  the  most  hopeless  effort  of  all.  Yet  by 
a  series  of  remarkable  compromises  the  members 
agreed  upon  a  constitution,  and  after  the  work  had 
been  approved  in  due  form  the  United  States  entered 
the   family  of   nations. 

Within  three  years  from  the  day  when  Wash- 
ington took  the  oath  of  office  as  first  president,  active 
measures  were  on  foot  for  the  establishment  of  the 
Hartford  Bank.  In  its  issue  of  January  23,  1792,  a 
correspondent  of  the  Connecticut  Courant  occupies 
nearly  a  page  in  explaining  the  local  need  of  such 
an  institution  and  how  it  would  benefit  the  town. 
Most  of  the  arguments,  novel  perhaps  then,  seem 
quite  commonplace  now.  Others  throw  a  strong 
light  on  the  situation.  The  writer  contended  that 
during  the  fall  and  winter  there  was  not  enough 
money  in  Hartford  to  buy  the  products  from  the 
areas  which  naturally  sought  this  market.  Hence 
was  lost  much  business  which  ought  to  center  here 
with  the  profits  accruing  from  the  export  trade.     He 


J.  HISTORY    OF 

throws  special  emphasis  on  the  influence  it  would 
have  "  in  destroying  that  bane  of  all  regular  trade 
and  that  curse  to  the  people  of  Connecticut,  barter." 
Taught  in  the  school  of  bitter  experience,  the  public 
were  keenly  alive  to  the  evils  of  truck.  He  con- 
tinues, "  Both  parties  take  advantages  and  both  are 
at  times  defrauded.  Barter  is  the  father  of  fraud 
and  the  instrument  of  knavery."  .  .  .  It  "  tends 
to  vitiate  morals.  Variable  prices  and  uncertainty  of 
advance  lead  a  man  to  take  one  little  advantage 
after  another,  till  he  loses  his  sense  of  right  and 
wrong ;  and  the  man  who  sells  as  he  can  light  of 
chaps  is  or  will  be   a  downright  knave." 

An  advertisement  printed  in  the  Courant  of 
February  27,  1792,  announced  a  proposal  to  petition 
the  General  Assembly  at  the  May  session  for  the 
establishment  of  a  bank  in  Hartford,  and  invited 
all  merchants  and  others  favorable  to  the  project  to 
meet  the  same  evening  at  six  o'clock  at  Mr.  David 
Bull's,  —  then  the  leading  tavern  of  the  place.  No 
considerate  reporter  embalmed  the  names  of  the 
respondents,  or  recorded  for  the  enlightenment  of 
posterity  their  remarks  and  resolves.  One  must 
look  over  those  old  files  to  appreciate  the  indebted- 
ness of  our  own  more  eager  age  to  the  ubiquitous 
news-gatherer.  Seldom  was  reference  made  to  local 
happenings.  These  everybody  was  supposed  to  know 
without  having  the  facts  thrust  at  him  in  the 
columns  of  the  weekly  paper.  It  was  the  period 
of  solid   essays  written  by  solid   men   on   the   politi- 


THE     HARTFORD     BANK  je 

cal  and  moral  questions  then  stirring  the  thoughts 
and  hopes  of  the  young  republic.  Such  efforts, 
supplemented  by  a  brief  digest  of  European  news 
from  two  to  six  months  old,  by  the  doings  of 
Congress  and  the  Cabinet,  by  accounts  of  notable 
events  occurring  at  a  distance,  and  a  sprinkling  of 
correspondence  often  flavored  with  piquant  personali- 
ties, seemed  to  satisfy  the  ambition  of  the  publisher 
and  the  demands  of  the  reader.  So  far  as  the  press 
of  the  last  century  has  preserved  materials  for  home 
history,  it  is  mostly  through  advertisements  intended 
only  for  ephemeral  uses. 

Talk  floating  in  the  air  and  brought  to  a  focus 
by  the  conference  of  February  27th,  now  took  form 
in  a  definite  scheme.  Long  and  explicit  articles  of 
association  were  drawn  up.  The  capital  of  the  bank 
was  fixed  at  $100,000,  divided  into  two  hundred  and 
fifty  shares  of  $400  each.  Maj.  John  Caldwell,  Maj. 
Barnabas  Deane,  and  John  Morgan  were  named  a 
committee  to  open  books  for  subscriptions  on  the 
first  Thursday  of  May  ensuing,  in  the  State-house, 
at  ten  o'clock  in  the  forenoon,  and  to  receive  pay- 
ment of  the  five  per  cent,  required  as  a  deposit  at 
the  time  of  signature.  They  were  also  to  call  the 
first  general  meeting  of  the  stockholders  and  to 
superintend  the  proceedings  thereat.  No  person, 
copartnership,  or  body  politic  was  allowed  to  sub- 
scribe for  or  to  hold  at  any  time  over  thirty  shares. 

John  Trumbull,  Chauncey  Goodrich,  and  Noah 
Webster   were    named    a  committee    to   prepare    and 


J  5  HISTORY    OF 

present  to  the  Legislature  a  petition  asking  for  an 
act  of  incorporation. 

On  Thursday,  May  3d,  the  books  were  opened. 
One  hundred  thousand  dollars  was  then  a  large  sum 
for  the  residents  of  Hartford  and  vicinity  to  embark 
in  a  single  venture.  But  through  the  teachings  of 
Colonel  Jeremiah  Wadsworth  mainly,  as  will  be 
explained  further  on,  the  community  had  been  well 
instructed  in  regard  to  the  utility  and  profits  of 
banking.  Nearly  every  one  prominent  in  the  mer- 
cantile and  professional  circles  of  the  city  took  a 
hand  in  the  enterprise.  The  sequence  of  names 
raises  a  strong  presumption  that  subscriptions  did 
not  pour  in  with  a  rush.  Probably  time  and  solicit- 
ation were  required  to  fill  the  list.  Local  pride  and 
patriotism  reinforced  the  hope  of  gain  in  pushing 
through   the   work. 

By  the  14th  of  the  month  the  capital  had  been 
subscribed  and  "  the  agents "  presented  to  the  Gen- 
eral Assembly  their  petition  for  an  act  of  incorpora- 
tion. After  a  statement  of  what  had  been  done  in 
the   matter,   they   say : 

"The  Objects  of  said  Institution  are  to  facilitate  commer- 
cial operations,  and  extend  the  trade  of  said  City  &  State, 
now  too  limited  by  the  smallness  of  mercantile  capitals;  and 
the  stockholders  flatter  themselves  that  a  well-regulated 
Bank  will  be  especially  useful  to  our  Export  Business,  as  it 
will  provide  Specie  for  the  merchants  wherewith  to  purchase 
the  Produce  brot  to  Market.  The  Public,  and  particularly 
commercial  men,  have  with  Regret  for  a  long  time  seen  the 
dependent  state   of   our  trade;   our  imports  and   Exports  in 


THE    HARTFORD    BANK  1 7 

the  Hands  of  the  Merchants  of  other  States;  the  trade  of  an 
extensive  inland  Country  on  Connecticut  River,  daily  grow- 
ing in  population  &  wealth,  diverted  from  said  city,  its 
natural  place,  into  other  channels,  out  of  the  State,  and 
merely  from  want  of  mercantile  wealth.  A  bank,  by  bring- 
ing into  operation  money  not  now  used  in  commerce,  and 
combining  mercantile  capital  and  exertion,  it  is  expected  will 
in  some  measure  remedy  this  evil." 

The  document  is  dated  at  Hartford,  May  14,  1792, 
and  is  signed  by  John  Trumbull,  Chauncey  Good- 
rich, and  Noah  Webster,  Jr.,  as  agents.  The  legis- 
lature acted  favorably.  The  charter  follows  closely 
in  its  essential  features  the  articles  of  association 
and  both  were  modeled  after  the  charter  of  the 
Bank  of  New  York,  which  was  drawn  up  by  Alex- 
ander Hamilton.  With  prophetic  foresight  of  dan- 
gers that  did  not  begin  their  destructive  work  till 
nearly  a  century  later,  and  in  classes  of  investments, 
which  were  then  unknown  and  undreamed  of,  the- 
founders  aimed  to  prevent  wrongs  to  the  minority 
and  to  the  public  by  providing  for  a  wide  distribu- 
tion of  ownership  and  by  limitations  of  the  voting 
power.  While  the  capital  remained  at  one  hundred 
thousand  dollars  no  person,  copartnership,  or  body 
politic,  except  the  State  of  Connecticut,  was  per^ 
mitted  to  hold  more  than  thirty  shares.  In  the 
choice  of  directors  and  other  business  respecting 
the  institution,  the  holders  of  one  and  two  shares 
were  entitled  to  one  vote,  between  two  and  ten  to 
one  vote  for  every  two  shares,  and  between  ten  and 
thirty  to  one  vote  for  every  four  shares.     No  person 


jg  HISTORY    OF 

or  corporation  could  cast  over  ten  votes.  Had  sucli 
wise  restraints  been  -universally  applied  in  con- 
ferring corporate  privileges  it  would  have  been 
impossible  for  individuals  or  syndicates  to  accu- 
mulate swollen  fortunes  by  the  wanton  sacrifice  of 
helpless  minorities  as  has  too  often  occurred  in 
the  management  of  great  railway  properties.  Such 
limitations  would  have  gone  far  to  prevent  the 
wrecking  of  joint  stock  life  insurance  companies, 
by  which  those  most  needing  protection  have  too 
often   been   robbed. 

To  guard  against  surprises  it  was  further 
enacted  that  after  the  first  election  no  share  or 
shares  should  entitle  the  holder  to  a  right  of  suf- 
frage unless  he  had  been  the  legal  proprietor  accord- 
ing to  the  regulations  of  the  bank  at  least  three 
calendar  months  before  the  meeting  at  which  he 
claimed   to   exercise   the   right. 

In  case  the  stockholders  should  judge  the  in- 
crease of  trade  to  require  it,  they  were  allowed  the 
privilege  of  increasing  the  capital  to  the  amount 
deemed  necessary  and  expedient,  not  exceeding  five 
hundred  thousand  dollars. 

The  number  of  directors  was  fixed  at  nine,  of 
whom  not  more  than  three-fourths,  exclusive  of  the 
president,  were  eligible  for  re-election  the  next 
succeeding  year. 

Some  of  the  early  promoters  of  the  enterprise 
desired  to  obtain  such  broad  concessions  as  would 
enable    the    bank    to    engage    also    in    manufactures, 


THE    HARTFORD    BANK  jq 

land-operations,  and  other  speculative  ventures;  but 
the  conservative  element  effectually  barred  the  door 
against  the  entry  of  illegitimate  schemes.  By  article 
eleventh  the  corporation  was  forbidden  to  trade  in 
anything  except  bills  of  exchange,  gold  or  silver 
bullion,  or  in  the  sale  of  goods  pledged  for  moneys 
lent  and  not  redeemed  in  due  time,  or  in  lands 
necessarily  taken  for  security  of  debts  previously 
contracted.  It  was  also  forbidden  to  take  interest 
on  loans  at  a  higher  rate  than  six  per  cent,  per 
annum. 

In  addition  to  the  original  capital  already  sub- 
scribed the  State  of  Connecticut  reserved  the  right 
to  take  forty  shares  provided  the  option  was  im- 
proved within  twelve  months  after  the  rising  of 
the  General  Assembly.  In  that  event  the  State 
could  appoint  two  additional  directors,  or  one  for 
a  subscription  of  twenty  shares,  subject  to  the  same 
regulations  as  other  stockholders. 

The  directors  were  impowered  to  invest  in  the 
funds  of  the  United  States  so  much  of  the  capital 
as  they  might  judge  to  be  for  the  benefit  of  the 
institution.  The  lawful  issue  of  notes  or  bills  was 
limited  to  fifty  per  cent,  of  the  capital  and  actual 
deposits  combined.  Other  provisions  of  the  charter 
relate   to  customary  details. 

The  stockholders  met  at  the  court-house,  June 
14,  1792,  to  organize  the  bank,  Oliver  Ellsworth  pre- 
siding. Jeremiah  Wadsworth,  John  Caldwell,  John 
Morgan,   George   Phillips,   Barnabas   Deane,  Timothy 


20  HISTORY     OF 

Burr,  James  Watson,  Caleb  Bull,  and  Ephraim  Root 
were  elected  directors  for  the  first  year. 

At  a  meeting  of  the  directors  on  Saturday, 
the  1 6th,  Jeremiah  Wadsworth  was  first  chosen 
president ;  but  as  he  declined  to  serve,  John  Cald- 
well was  then  elected.  Hezekiah  Merrill  was 
appointed  cashier.  At  the  same  meeting  it  was 
resolved  that  the  sum  of  five  hundred  dollars  be 
allowed  the  cashier  as  compensation  for  his  services 
for  one  year,  to  be  paid  quarterly  and  to  commence 
from  the  fifteenth  of  July  ensuing.  He  was  re- 
quired  to   give   bond   in   the   sum   of   $20,000. 

It  was  also  resolved  that  the  bank  notes  to  be 
issued  should  be  of  the  following  denominations, 
viz. :  one,  two,  five,  eight,  ten,  twenty,  fifty,  and 
one   hundred   dollars   each. 

Pursuant  to  the  requirements  of  the  charter 
the  cashier,  on  June  25th,  issued  a  call  for  thirty 
per  cent.,  or  $120  per  share,  payable  Monday,  July 
2d.  This  was  the  second  installment,  the  first,  of 
five  per  cent.,  having  been  deposited  at  the  time 
of  signing  the  articles.  Subscribers  were  invited 
"  to  call  at  the  door  next  adjoining  the  post-office, 
where  attendance  will  be  given  for  receiving  the 
same."* 

At  a  meeting  of  the  president  and  directors, 
held  July  8,  1792,  the  following  rules  were  adopted, 
entered  on  the  records,  and  published  in  the  Cou- 
rant  of  August   6th: 

*  American  Mercury,  July  2,  1792. 


THE    HARTFORD    BANK  2 1 

RULES   TO  BE  OBSERVED   AT   HARTFORD    BANK   IN 
HARTFORD. 

The  bank  to  be  open  every  day  in  the  year;  except  Sun- 
days, public  Fasts,  Thanksgivings,  Christmas,  and  the  Fourth 
of  July,  from  the  hour  of  Nine  o'clock  till  Twelve  o'clock  in 
the  morning,  and  from  Two  o'clock  to  Five  in  the  afternoon, 
Saturday  afternoon  excepted. 

Proposals  for  discount  will  be  received  every  Wednes- 
day, and  if  accepted,  the  money  will  be  paid  the  following 
day. 

Payments  made  at  the  Bank  are  never  subject  to  revis- 
ions—  errors  (if  any)  must  be  discovered  before  the  money 
is  taken  off  the   Counter. 

In  order  to  obtain  Discount,  a  note  expressing  the  sum 
wanted  (in  Dollars)  must  be  inclosed  in  a  letter,  directed  to 
the  Cashier  of  the  Hartford  Bank,  with  an  indorser,  re- 
questing Discount  may  be  made  for  any  number  of  days  not 
exceeding  Forty-five. 

Notes  presented  for  Discount  must  be  executed  in  the 
City  of  Hartford,  and  the  drawer  or  the  indorser  must  be  a 
resident  within  said  City. 

Charge  shall  be  taken  in  said  Bank  of  the  Gold  and 
Silver  of  all  those  who  chuse  to  place  it  there,  free  of 
expence,  and  will  be  kept  subject  to  their  order,  payable  at 
sight.  And  they  will  receive  deposits  of  ingots  of  Gold,  bars 
of  Silver,  wrought  Plate,  or  other  valuable  articles  of  small 
bulk,  and  return  the  same  on  demand  to  the  depositor. 

Bills  and  notes  left  at  the  office  for  collection  will  be 
presented  for  acceptance  and  the  money  collected  or  de- 
manded withoiit  expence,  except  in  case  of  protest,  the 
charges  of  which  shall  be  paid  by  the  person  lodging  the 
bill  or  note.  * 

Gold  and  Silver  coins  will  be  received  and  paid  accord- 
ing to  the  laws  established  by  the  Congress  of  the  United 
States. 


22  HISTORY    OF 


CHAPTER    II 

THE    SITUATION    IN    1792 

ON  Wednesday,  the  eighth  of  August,  1792,  the 
doors  of  the  bank  were  opened  for  business. 
Washington  had  completed  the  third  year 
of  his  first  term,  and  the  interval  of  orderly  rule 
had  produced  a  marvelous  improvement  in  the 
prospects  of  the  country.  By  a  series  of  compre- 
hensive and  coherent  measures  Alexander  Hamilton, 
Secretary  of  the  Treasury,  had  brought  system  out 
of  confusion,  enthroned  confidence  in  the  place  of 
distrust,  and  set  in  motion  the  financial  machinery 
which  in  manifold  ways  stimulated  industry,  econo- 
mized  its  processes,    and   multiplied    its   rewards. 

For  funding  the  domestic  debt  a  loan  was 
authorized  large  enough  to  cover  the  whole  amount 
at  the  current  price  of  the  paper  in  the  market. 
Holders  of  certificates  issued  by  the  Continental 
Congress  were  allowed  to  subscribe  for  the  bonds, 
paying  in  evidences  of  debt  against  the  government 
at  their  specie  value.  Continental  currency  was 
funded  in  the  ratio  of  one  hundred  to  one  in  coin. 
The  new  stock  bore  interest  at  the  rate  of  six  per 
cent,  per  annum,  but  on  one-third  of  the  issues  to 
each  subscriber  interest  did  not  begin  to  run  till 
after  the   year   1800.     State   debts   incurred   in   carry- 


THE     HARTFORD     BANK  3^ 

ing  on  the  war  were  assumed  by  the  general 
government,  although  the  adjustment  was  beset 
with   difficulties. 

Import  and  tonnage  duties  were  laid  to  meet 
the  interest,  and  to  provide  for  the  gradual  extin- 
guishment of  the  principal.  By  the  act  of  March 
3,  1 791,  the  revenues  were  reinforced  by  a  tax  on 
domestic  distilled  spirits,  and  other  internal  taxes 
were   added   later. 

In  1 79 1  the  first  United  States  bank,  modeled 
after  the  Bank  of  England,  was  chartered  by  Con- 
gress. Individuals  were  allowed  to  subscribe  for 
four-fifths  of  the  capital  of  ten  million  dollars,  pay- 
ing one-fourth  in  coin  and  three-fourths  in  govern- 
ment stocks.  For  the  other  fifth  the  government 
reserved  the  right  to  subscribe.  Its  duration  was 
limited  to  twenty  years.  The  head  office  was 
located  in  Philadelphia,  and  it  was  authorized  to 
establish  branches  in  the  principal  cities  of  the 
Union.  No  bills  were  to  be  issued  for  less  than 
ten  dollars,  and  they  were  receivable  in  payment 
of    dues  to  the   government. 

Under  the  act  of  April  2,  1792,  the  mint  was 
established  in  Philadelphia  also,  but,  owing  to  diffi- 
culties and  delays  encountered  in  organization,  the 
first  silver  coins  were  struck  in  1794,  and  the  first 
gold  coins  in  1795.  For  a  number  of  years  its 
operations  were  slow  and  its  methods  costly.  At 
the  close  of  the  century  a  total  of  less  than  $2,000,- 
000    had    been    coined    at    an    expense    of    $213,336, 


2A  HISTORY    OF 

with  an  off-set  of  $48,041.42,  the  profit  on  cents 
and  half-cents.  After  much  tribulation,  however,  it 
grew  into  an  efficient  and  indispensable  piece  of 
mechanism. 

To  crown  all,  Hamilton  devised  a  system  of 
accounts  for  the  treasury  department  so  complete 
that  it  has  never  been   essentially   improved. 

By  arraying  people  of  substance  in  support  of 
the  Union  these  measures  greatly  improved  the 
prospects  for  permanence  of  a  system  of  constitu- 
tional government,  which  a  large  minority  in  several 
of  the  States  had  opposed,  and  which  many  regarded 
as  a  doubtful  experiment.  As  stability  became 
more  assured  the  dormant  spirit  of  enterprise  was 
again  aroused  to  activity,  and  in  Connecticut  one  of 
the  most  marked  symptoms  of  the  awakening  was 
the   organization   of  the    Hartford   Bank. 

To  appreciate  the  changes  which  the  institution 
initiated  and  the  solid  growth  which  it  has  helped 
conspicuously  to  foster,  we  must  first  see  what  sort 
of   a  place    Hartford   was   one   hundred   years   ago. 

Ambitious  beyond  their  strength,  as  many  resi- 
dents thought,  about  one-sixth  part  of  the  town 
procured  a  municipal  charter  in  1784.  Measured  by 
modern  standards  the  "  city "  eight  years  later  was 
still  a  provincial  village.  The  population  of  the 
entire  township,  then  extending  westward  to  Farm- 
ington,  slightly  exceeded  four  thousand.  Mercantile 
business  was  mostly  confined  to  Ferry,  Commerce, 
and   State  streets.     State   terminated   on   the    east  at 


THE     HARTFORD     BANK  2K 

Front,  and  was  not  carried  through  to  the  river  till 
1801,  in  pursuance  of  a  vote  passed  by  the  Common 
Council  the  27th  of  the  previous  December.  Main 
from  the  present  junction  with  Morgan  to  the  south 
meeting-house  was  bordered  by  scattered  residences, 
varied  by  a  sprinkling  of  shops  and  taverns.  Trum- 
bull, out  in  the  country,  was  appropriately  called 
Back  street,  as  marking  the  extreme  western  bound- 
ary of  the  settlement.  Pearl  from  Main  to  Back 
was  dignified  as  Prison  Street,  and  thence  to  Little 
River  as  Workhouse  Lane.  Asylum  from  Main 
westward  was  laid  out  as  part  of  the  Farmington 
turnpike,  which  received  a  charter  from  the  Legis- 
lature in  October,  1801.  It  took  its  present  name 
after  the  dedication  of  the  American  Asylum  for 
the   Deaf  and   Dumb,  in    1821. 

Advertisers  rarely  referred  to  streets  to  desig- 
nate their  locations.  Buildings  were  not  numbeied 
till  1838.  Not  only  citizens  but  residents  of  the 
tributary  country  knew  without  telling  just  where 
to  look  for  every  shop  and  store.  If  for  any  reason 
an  advertiser  wished  to  be  explicit  he  mentioned 
the  proximity  of  his  place  of  business  to  some  noted 
landmark  or  well-known  establishment.  Thus,  the 
printing-office  of  Hudson  &  Goodwin  served  long 
as  a  guide-board.  The  river,  the  ferry,  and  the 
"  Great  bridge "  often  answered  a  similar  purpose. 
By  the  "  Great  bridge "  was  meant  not  the  arches 
first  thrown  across  the  Connecticut  in  1809,  but  the 
more  modest  structure  spanning  Park   River  on   the 


25  HISTORY     OF 

line  of  Main.  Not  a  little  in  the  way  of  traffic  was 
done  under  or  near  "  the  large  elm  at  the  comer 
of  the  street  leading  to  the  goal,"  now  known  as 
the   corner  of  Main   and   Pearl. 

Income  was  derived  chiefly  from  agriculture  and 
trade.  Hartford  carried  on  a  lively  commerce  with 
the  West  Indies,  exporting  horses,  cattle,  mules, 
woods,  and  farm  produce,  and  importing  specie, 
rum,  and  molasses,  —  the  last  commodity  destined, 
unhappily,  not  so  much  for  sweetening  food  as  for 
distillation  into  more  rum.  Less  frequently  ships 
similarly  laden  sailed  to  London,  Amsterdam,  and 
the   Mediterranean. 

Domestic  trade  met  the  competition  of  Norwich 
and  Providence,  about  thirty  miles  to  the  eastward. 
Northward  her  merchants  made  a  resolute  fight  to 
control  the  traffic  of  the  Connecticut  valley  far  up 
toward  the  sources  of  the  stream.  When  not  closed 
by  ice,  the  river  brought  down  much  timber  and 
produce  from  Massachusetts,  New  Hampshire,  and 
Vermont.  By  means  of  standing  posts  and  ropes 
the  sturdy  navigators  managed  to  work  their  way 
homeward  through  the  Enfield  Falls  and  other 
rapids. 

Local  manufactures  were  for  the  most  part 
primitive  and  rudimentary.  The  "  Hartford  Woolen 
Manufactory,"  the  first  of  the  kind  in  the  country 
for  making  broadcloth,  planted  in  1788  near  the 
foot  of  Mulberry  street,  had  already  passed  the 
climax    and    was   drifting    into   the    troubled    waters 


THE    HARTFORD    BANK  37 

which  engulfed  it  in  1795.  On  its  looms  was  woven 
the  cloth  worn  April  30,  1789,  by  Gen.  Washington, 
John  Adams,  and  the  Connecticut  delegation  in 
Congress  at  the  inaugural  ceremonies  of  the  first 
president.  But  the  best  talent  in  the  State  could 
not  save  from  disaster  a  courageous  but  premature 
venture.  Enos  Doolittle  had  erected  "at  great  ex- 
pense "  the  bell  foundry  in  the  rear  of  Main, 
nearly  opposite  St.  John's  church,  which,  under 
various  ownership,  survived  for  half  a  century.  A 
single  silver  four  pence  ha'penny  dropped  at  each 
casting  into  the  molten  mass  served  both  to  account 
to  church  committees  for  the  costliness  of  the  mate- 
rial and  to  soothe  the  conscience  of  the  maker. 
John  and  George  Steele,  from  their  foundry  "  four 
rods  north  of  the  bridge,"  furnished  "  at  a  short 
warning"  stills  and  worms,  brass  kettles,  and  other 
utensils.  A  little  was  done  in  the  way  of  making 
silverware,  rope  and  cordage,  soap  and  candles, 
combing  cards,  pottery,  linseed  oil,  horn  combs, 
nails,  and  coarse  articles  of  prime  necessity.  Coop- 
erage, tanning,  and  the  weaving  of  hemp  and  flax 
had  risen  to  the  rank  of  standard  industries. 

Then,  as  now,  the  main  line  of  communication 
between  New  York  and  Boston  passed  through  Hart- 
ford. From  November  first  to  May  first  the  mail* 
left  Boston  every  Monday  and  Thursday,  at  one 
o'clock  in  the  afternoon,  via  Worcester,  Springfield, 
Hartford,   Middletown,  and  New   Haven,  arriving  at 

*  Proposals  of  Sept.  10,  1792,  Timothy  Pickering,  Postmaster-General. 


28  HISTORY    OF 

New  York  every  Saturday  and  Wednesday  (the 
sixth  day  from  its  departure)  by  ten  in  the  fore- 
noon. The  return  schedule  was  the  same.  During 
the  other  six  months  of  the  year  the  service  was 
tri-weekly  and  the  running  time  each  way  three 
days  and  eight  hours.  There  was  a  second  mail 
route  between  Hartford  and  New  York,  served  once 
a  week  via  Farmington,  Litchfield,  Danbury,  etc. 
Hartford  also  enjoyed  a  tri-weekly  mail  to  Provi- 
dence  by  way  of   Norwich. 

The  wealth  of  the  city  a  century  ago  cannot  be 
estimated  with  any  near  approach  to  exactness. 
Under  the  act  passed  at  the  October  session  of  the 
Legislature  in  1792  granting  a  tax  of  one  penny  on 
the  pound,  payable  March  i,  1793,  and  amounting 
to  ;^6588  2s.  id.,  Hartford  ranks  the  seventh  town 
on  the  list,  Norwalk,  Lebanon,  Middletown,  Guilford, 
Fairfield,  and  Wethersfield,  in  the  order  named,  sur- 
passing her  in  taxable  possessions.  Still,  the  method 
of  making  up  the  lists  was  such  that  no  trust- 
worthy inference  can  be  drawn  in  regard  to  the 
real  or  relative  wealth  of  any  town  in  the  State. 
Lands  were  classified  according  to  uses  and  taxed 
at  a  fixed  sum  per  acre  irrespective  of  location  or 
fertility,  slight  differences  being  allowed  in  favor  of 
some  counties.  Horses,  cattle,  vehicles,  houses,  in 
short  everything  the  law  attempted  to  reach,  went 
into  the  list  at  a  specific  and  invariable  valuation. 
Dwellings  in  good  repair  were  estimated  at  fifteen 
shillings    per    fire-place.       Horses,    cows,    and    steers 


THE    HARTFORD    BANK  30 

three  years  old  were  set  at  three  pounds  each,  and 
oxen  four  years  old  at  four  pounds.  Able-bodied 
male  persons  from  sixteen  years  of  age  to  twenty- 
one  were  valued  for  purposes  of  revenue  at  nine 
pounds,  and  from  twenty-one  to  seventy  at  eighteen 
pounds.  The  governor,  lieutenant-governor,  assist- 
ants, ministers  of  the  gospel,  teachers,  and  college 
students  were  specially  exempted.  The  opportunities 
of  the  attorney  were  capitalized,  "  the  least  practi- 
tioner at  fifty  pounds,  larger  practitioners  higher  in 
proportion."  Doctors  went  in  at  one-fifth  the  rating 
of  lawyers.  Clergymen  during  continuance  in  the 
ministry  escaped  scot-free  in  both  estate  and  poll,  as 
did  all  property  devoted  to  ''pious  uses."  Chariots 
were  assessed  at  ;^2o,  coaches  £2^,,  chaises  ^5,  gold 
watches  £^,  silver  and  other  watches  £1-10.  From 
extreme  rarity  these  articles  of  luxury  added  little 
to  the  revenue. 

It  will  be  seen  that  public  burdens  were  thrown 
more  upon  persons  than  possessions,  and  that  the 
latter   were    taxed    with    slight    reference    to    values. 

After  the  Revolution  Hartford,  the  headquarters 
of  the  "  Hartford  wits,"  became  a  leading  literary 
center  of  the  country.  The  impulse  then  given  to 
the  intellectual  life  of  the  place  has  since  lost  none 
of  its  energfy. 

One  hundred  years  ago  Connecticut  was  living 
under  the  charter  granted  by  Charles  H  in  1662, 
and  re-adopted  by  the  General  Assembly  in  1776. 
Her  population  was  homogeneous  and   almost  exclu- 


-Q  HISTORY    OF 

sively  of  English  lineage.  Slavery  was  a  legal 
institution,  though  steps  had  been  taken  for  its 
gradual  extinguishment,  all  children  born  in  servi- 
tude after  March  i,  1784,  becoming  free  at  the  age 
of  twenty-five.  The  privilege  of  enrollment  in  the 
rank  of  voters  depended  on  a  property  qualification, 
the  theory  being  that  all  participants  in  the  trust 
of  governing  must  have  a  substantial  stake  in  the 
public  welfare.  Debtors  could  be  thrown  into  prison 
without  allegation  of  fraud.  The  entire  public  were 
taxed  for  the  support  of  the  clergy  and  for  the 
erection  of  meeting-houses,  with  no  exemption  in 
favor  of  beliefs  and  preferences  which  fell  without 
the   prescribed   limits. 

Such  is  a  hurried  outline  of  the  situation  — 
national,  municipal,  and  State  —  when  the  Hartford 
Bank  began   its  work. 


THE    HARTFORD    BANK  ,1 


CHAPTER    III 

THE    FOUNDERS 

THAT  Hartford  so  closely  followed  New  York 
and  Boston  in  the  establishment  of  a  bank, 
was  due  to  the  influence  of  Colonel  Jeremiah 
Wadsworth.  An  intimate  associate,  during  and  after 
the  Revolution,  of  Robert  Morris,  Alexander  Hamil- 
ton and  the  coterie  of  financiers  whose  brilliant 
services,  based  upon  enlightened  views,  rescued  the 
confederation  from  bankruptcy,  and  provided  the 
means  for  carrying  the  struggle  to  a  successful  issue, 
he  belonged  to  the  same  economic  school  with  those 
great  leaders.  As  the  largest  subscriber  holding 
one  hundred  and  four  shares  of  $400  each,  he  helped 
to  organize  the  Bank  of  North  America  at  Philadel- 
phia, in  1782.  May  9,  1785,  he  was  elected  president 
of  the  Bank  of  New  York.  An  association  composed 
of  the  prominent  capitalists  and  merchants  of  the 
metropolis  took  from  a  provincial  town  its  chief 
executive  officer  on  the  urgent  advice  of  Alexander 
Hamilton,  the  dominant  director,  who  for  far  broader 
than  reasons  of  prospective  profit  felt  the  deepest 
solicitude  for  the  success  of  the  undertaking.  Col- 
onel Wadsworth  held  the  position  but  a  single  year. 
Confidence  in  his  sagacity  led  his  neighbors  to  act 
upon   his  advice  in   founding  the   Hartford   Bank. 


-2  HISTORY    OF 

During  the  Revolution,  Colonel  Wadsworth  filled 
well,  places  of  great  responsibility,  but  if  judged 
from  the  space  allotted  to  him  in  biographical 
cyclopaedias,  has  not  received  from  posterity  ade- 
quate recognition.  He  was  born  in  Hartford,  July 
12,  1743,  the  son  of  Rev.  Daniel  Wadsworth,  pastor 
of  the  First  church  from  1732  till  death  closed  his 
ministry,  in  1747.  In  early  life  he  followed  the  sea, 
making  several  voyages  as  master.  At  the  age  of 
thirty  he  settled  in  Hartford  as  a  merchant.  Two 
years  later  he  was  appointed  a  member  of  the 
commission  for  supplying  Connecticut  troops  with 
provisions  and  stores.  In  the  spring  of  1778,  he  was 
made  Commissary-General  of  purchases  for  the 
colonies.  The  country  was  poor,  the  army  destitute, 
and  the  people  dispirited.  Under  such  conditions 
the  office  had  few  attractions,  but  was  accepted  from 
a  sense  of  duty.  Severe  labors,  rendered  more 
exhausting  by  the  vacillation  of  Congress,  wore  out 
his  strength  and  patience.  Broken  in  health,  he 
resigned   in  January,  1780. 

A  few  months  later  he  was  made  commissary 
for  the  French  army  in  America,  and  so  continued 
till  the  end  of  the  war.  Under  his  roof  Washington 
was  entertained  when  he  came  east  with  Knox  and 
La  Fayette  for  his  first  interview  with  Count  Rocham- 
beau   and  Admiral  Ternay. 

His  partner 'in  supplying  the  French  troops  was 
John  B.  Church,  an  Englishman  who  came  to 
America  before   the    Revolution,  under   the    assumed 


THE     HARTFORD     BANK  ^^ 

name  of  John  Carter,  and  engaged  in  underwriting. 
By  talents  and  push  he  acquired  property  and  influ- 
ence. He  made  a  runaway  match  with  a  daughter 
of  General  Philip  Schuyler,  thus  becoming  a  brother- 
in-law  of  Alexander  Hamilton.  Resuming  his  proper 
name  when  the  reason  for  concealment  had  ceased, 
he  afterwards  hovered  between  the  two  continents, 
in  England,  holding  at  one  time  a  seat  in  Parlia- 
ment ;  in  America,  speculating  heavily  in  wild  lands, 
and   finally  died  in   London,  about    1816. 

On  the  declaration  of  peace  the  partners 
hastened  to  Paris  for  a  settlement  of  their  accounts. 
These  were  found  so  clear  in  detail  that  an  adjust- 
ment was   effected  without   delay  or  controversy. 

In  the  fall  of  1784  Col.  Wadsworth  returned  to 
America,  bringing  a  large  stock  of  foreign  goods. 

Few  comprehended  more  fully  the  resources  of 
the  country  or  labored  more  intelligently  for  their 
development. 

Col.  Wadsworth  served  repeatedly  in  each  branch 
of  the  Connecticut  Legislature,  three  years  in  the 
Continental  Congress,  in  the  Convention  called  to 
ratify  the  Constitution,  and  for  three  successive 
terms  in  the  Federal  Congress.  He  was  intimately 
connected  with  four  of  the  first  six  banks  formed 
after  the  separation  from  Great  Britain,  having  in 
addition  to  the  others  already  mentioned  held  a 
directorship  in  the  Bank  of  the  United  States.  The 
wealthiest  man  in  town,  he  was  foremost  in  every 
enterprise  which  promised  to  advance  its  prosperity. 


^4  HISTORY    OF 

In  recognition  of  his  scholastic  attainments,  Dart- 
mouth College  conferred  upon  him  the  honorary- 
degree  of  A.M.  in  1792,  and  Yale  in  1796.  He  died 
April  30,  1804,  leaving  one  son,  Daniel  Wadsworth, 
founder  of  the  Athenaeum,  and  one  daughter,  Cath- 
erine, the  wife  of  Gen.  Nathaniel  Terry. 

Major  John  Caldwell,  president  of  the  bank 
from  its  organization  till  1819,  was  a  merchant 
extensively  engaged  in  domestic  and  foreign  trade. 
He  built  and  owned  ships,  providing  no  small  share 
of  the  freight  to  and  from  the  West  Indies  and 
for  occasional  trips  to  Europe.  Public-spirited  and 
liberal,  he  labored  with  hardly  more  assiduity  to 
.enlarge  his  private  fortune  than  to  advance  the 
general  welfare.  John  Trumbull,  John  Caldwell, 
and  John  Morgan  constituted  the  commission  for 
building  the  State  House,  begun  in  1794.  He  was 
a,lso  on  the  commission  which  supervised  the  con- 
struction of  the  bridge  across  the  Connecticut  in 
1809.  He  was  the  first  major  of  the  Governor's 
Horse  Guards,  incorporated  in  1788  from  a  volunteer 
troop  that  did  service  during  the  Revolution,  and 
was  active  in  the  establishment  of  the  Asylum  for 
the  Deaf  and  Dumb.  He  was  also  one  of  the 
pioneers  in  local  underwriting,  issuing,  with  others, 
policies  on  the  vessels  and  cargoes  that  sailed  from 
the  Connecticut.  He  was  twenty  times  elected  to 
the   State   Legislature. 

For  a  while  the  firm  of  John  Caldwell  &  Co. 
prospered    greatly,    but    later    suffered    heavy    losses 


THE    HARTFORD    BANK  ,r 

as  owners  and  insurers  through  the  depredations 
of  French  privateers.  The  paralysis  of  commerce 
which  preceded  and  accompanied  the  War  of  1812 
completed  the  wreck  of  his  fortune.  He  lived  about 
twenty  years  after  retirement  from  active  work, 
passing  away  May  26,  1838,  in  his  eighty-third  year, 
having  been  born  Dec.  21,   1755. 

Major  Caldwell  is  still  remembered  as  a  genial, 
courtly,  and  kindly  gentleman  of  the  old  school, 
who  never  surrendered  short  breeches,  long  stock- 
ings, silver  knee-buckles,  and  ruffled  shirt-bosoms  to 
the  spirit  of  modern  innovation.  He  was  perhaps 
a  trifle  over  six  feet  tall  and  had  a  stalwart  frame. 
Through  his  daughter  Sarah  he  was  grandfather  of 
Col.  Samuel   Colt. 

John  Morgan,  fifth  in  descent  from  James,  the 
emigrant  ancestor,  who  arrived  in  Boston  in  1636, 
and  in  1650  moved  from  Roxbury  to  New  London, 
where  he  took  a  prominent  part  in  upbuilding  the 
infant  settlement,  was  born  at  Killingworth  (now 
Clinton),  June  27,  1753.  Having  graduated  at  Yale 
College  in  1772,  he  selected  Hartford  for  his  future 
home,  and  became  one  of  the  leading  merchants 
of  the  Connecticut  Valley.  His  operations  reached 
around  the  globe.  In  the  "  Empress  of  China,"  the 
first  American  craft  to  enter  Chinese  waters,  he 
imported  in  1785  an  invoice  of  China  ware,  includ- 
ing a  special  dining  set  ornamented  with  his  name 
and  the  family  coat-of-arms.  By  the  largest  sub- 
scription,   reinforced    by   unwearied    efforts,    he    pro- 


^5  HISTORY    OF 

moted  the  construction  of  the  bridge  across  the 
Connecticut,  the  street  thence  to  Main  taking  his 
name,  and  from  1809  till  1820  held  the  presidency 
of  the  company.  Largely  through  his  zeal  and 
contributions  Christ  Church  was  raised  from  weak- 
ness to  strength.  Possessing  a  fine  voice,  he  was 
expected  to  read  the  service  in  the  absence  of 
the   rector. 

In  moments  of  excitement  Mr.  Morgan  some- 
times unconsciously  peppered  his  conversation  with 
words  which  as  found  in  the  prayer-book  are  differ- 
ently collocated  and  suggest  different  associations 
of  ideas. 

After  accumulating  a  large  property,  he  lived  to 
see  it  take  wings  and  to  feel  the  stings  of  poverty. 
He  belonged  to  the  small  coterie  that  to  the  last 
clung  to  the  colonial  style  of  dress,  which  well 
became  their  high  bearing  and  courtly  manners. 
He  died  in  New  York  City,  Sept.  19,  1842,  aged 
eighty-nine.  Elias  Morgan,  half-brother  of  John,  for 
several  years  a  hardware  merchant  of  Hartford,  died 
in  St.  Croix,  West  Indies,  May  15,  181 2,  at  the  age 
of  forty-one.  Junius  S.  Morgan,  the  London  banker, 
who  toward  the  close  of  life  remembered  Hartford 
with  a  princely  gift  for  a  free  public  library, 
descended  from  Miles  Morgan,  youngest  brother  of 
James,  who  also  came   to  America  in    1636. 

Gen.  George  Phillips  resided  at  Middletown. 
He  was  born  April  4,  1750;  graduated  at  Yale 
College     in     1769;     settled    in    his    native     town    as 


THE    HARTFORD    BANK  -- 

merchant  and  importer;  served  in  the  Legislature 
in  1787  and  1788;  was  active  in  the  local  militia; 
and  possessed  large  means  for  the  period.  He  died 
at   Savannah,  Ga.,  Oct.  2,   i'8o2. 

Barnabas  Deane  followed  his  older  brother  Silas 
from  Groton  to  Wethersfield,  whence  Barnabas,  after 
the  Revolution,  removed  to  Hartford.  He  served 
the  usual  novitiate  as  supercargo  and  master  in  the 
West  India  trade,  and  took  charge  of  the  business 
of  Silas  Deane  on  the  election  of  the  latter  to  Con- 
gress in  1774.  Early  in  the  Revolution  he  saw  a 
little  service  as  ensign  in  the  famous  company  of 
Capt.  John  Chester  of  Wethersfield,  and  for  twenty 
days  in  assisting  to  raise  men  and  provisions  for 
the  garrisons  at  Crown  Point  and  Ticonderoga, 
Preferring  trade  to  war,  he  soon  settled  down  as  a 
merchant. 

In  the  spring  of  1779  the  business  was  enlarged 
through  the  accession  of  Gen.  Nathaniel  Greene  and 
Col.  Jeremiah  Wadsworth  as  silent  partners.  Greene 
was  then  quartermaster-general,  and  Wadsworth  com- 
missary-general of  the  Confederation.  While  there 
is  no  evidence  that  either  used  official  position  to 
advance  the  interests  of  the  firm  at  the  expense  of 
the  public,  both  took  every  precaution  to  conceal 
the  connection  through  fear  of  scandal.  The  corre- 
spondence was  conducted  in  cipher.  Greene  re- 
mained in  the  concern  about  two  and  a  half  years, 
and  Wadsworth  till  the  death  of  Deane,  Dec.  6,  1794. 
Mr.  Deane  lived  at  the  roomy  place  now  known  as 


^g  HISTORY    OF 

No,  73  Grove  street,  at  present  the  residence  of 
Nelson   Hollister. 

General  Timothy  Burr  succeeded  to  the  mercan- 
tile business  in  Hartford,  left  by  his  father,  Timothy 
Burr,  St.,  who  died  August  19,  1799.  From  boyhood 
he  took  a  lively  interest  in  military  matters,  rising 
in  the  State  militia  to  the  rank  of  general.  Shortly 
before  the  outbreak  of  the  last  war  with  Great 
Britain,  he  moved  to  Ogdensburg,  N.  Y.  In  1812, 
he  was  appointed  commissary-general.  In  1821,  he 
took  up  his  residence  at  Rochester,  where  he  died 
of  the   cholera    epidemic,   in    1832,   aged   sixty    years. 

James  Watson  was  born  at  Bethlehem,  Conn., 
April  6,  1750,  graduated  at  Yale  College  in  1776, 
and  June  loth,  of  the  same  year,  was  commissioned 
2d  lieutenant  in  Bradley's  battalion,  Wadsworth's 
brigade.  The  command  served  around  New  York 
City,  during  the  summer  and  fall.  January  i,  1777, 
he  was  commissioned  captain  in  the  regiment  of 
Colonel  Samuel  B,  Webb,  but  resigned  in  a  few 
months  on  account  of  a  dispute  in  regard  to  sen- 
iority of  rank.  In  April,  1780,  he  was  appointed 
commissary  of  purchases  in  the  Continental  line. 
He  married  Mary,  daughter  of  Colonel  Samuel 
Talcott  of  Hartford.  After  the  war  he  became  a 
merchant  in  New  York  City.  He  was  elected  to  the 
General  Assembly  of  New  York  in  1 791-4-5-6,  and 
was  speaker  in  1794.  He  became  State  senator  in 
1797,  and  was  a  member  of  the  United  States  Sen- 
ate,  1 798-1 800.     On  the  accession  of  Jefferson  to  the 


THE    HARTFORD    BANK  ^g 

presidency,  he  was  removed  from  the  position  of 
naval  officer,  being  the  first  martyr,  it  is  said,  to  the 
•'  spoils   system." 

The  initial  meeting  for  the  organization  of  the 
"New  England  Society  of  the  City  and  State  of 
New  York "  was  held  in  the  parlor  of  Mr.  Watson, 
No.  6  State  street,  near  the  Battery.  President 
Dwight  came  from  New  Haven  in  a  sloop  expressly 
to  attend,  having,  by  favor  of  wind  and  tide,  made 
a  quick  passage  in  two  days.  Mr.  Watson  was  the 
first  president  of  the  new  society.  Having  retired 
from  active  work,  he  was  then  enjoying  a  life  of 
elegant  leisure.  Trumbull,  the  artist,  one  of  his 
intimate  associates,  painted  an  attractive  portrait  of 
him.  After  1795,  Mr.  Watson  was  also  one  of  the 
regents  of  the  University  of  New  York.  Among 
his  business  ventures  he  bought  a  large  tract  of 
land  in  Lewis  and  Herkimer  counties,  which  still 
remains  in  part  a  wilderness.  He  died  May  15,  1806, 
and  was  buried  at  Litchfield,  Conn.,  leaving  one  son, 
James  Talcott  Watson,  who  died  in  1839.  His  large 
estate  was  distributed  among  one  hundred  and 
seventy  relatives. 

Caleb  Bull  was  the  eldest  of  twelve  children  of 
Caleb  and  Martha  (Cadwell)  Bull,  all  of  whom  lived 
to  marry.  Of  these,  six  sons,  Caleb,  James,  Heze- 
kiah,  George,  Michael,  and  Thomas  are  found  in  the 
original  list  of  subscribers  to  the  stock  of  the  bank. 
Caleb,  Jr.,  was  born  'June  16,  1746,  and  died  Febru- 
ary   12,    1797.     He   left  an   estate   of  ;^  12,380. 


.Q  HISTORY    OF 

Ephraim  Root,  the  ninth  and  last  in  the  list  of 
original  directors,  was  born  in  Coventry,  Conn.,  Oct, 
6,  1762,  graduated  at  Yale  College  in  1782,  was 
admitted  to  the  bar  in  1784,  and  practised  law  in 
Hartford.  He  died  in  1825.  His  brother,  Jesse 
Root,  Jr.,  was  a  merchant  here,  dealing  in  general 
supplies.  They  were  sons  of  Hon.  Jesse  Root,  who 
for  over  thirty  years  was  almost  constantly  in  public 
service,  becoming  chief  judge  of  the  Superior  Court 
in  1798.  At  the  age  of  eighty-one,  he  was  an  active 
member  of  the   Constitutional   Convention   of    181 8. 

Able  as  was  the  first  directory  of  the  bank,  that 
inner  body  by  no  means  exhausted  the  talents  of 
the  association.  Among  the  stockholders  *  were 
many  who  served  their  generation  well,  and  quite  a 
large  number  whose  personality  was  stamped  con- 
spicuously on  the  thought  and  progress  of  both  state 
and  nation. 

Oliver  Ellsworth,  LL.D.,  was  born  in  Windsor, 
Conn.,  March  24,  1746-7;  graduated  at  the  College 
of  New  Jersey  in  1 766 ;  was  admitted  to  the  bar 
in  1771 ;  and  soon  rose  to  a  commanding  position. 
Having  served  in  the  council  of  the  State,  he  was 
sent  to  the  Continental  Congress  in  1777,  and  in 
1784  was  appointed  judge   of  the   Superior  Court. 

Judge  Ellsworth  rendered  his  most  valuable 
services  to  the  nascent  republic  in  the  Constitutional 
Convention  of  1787.  In  the  conflict  between  differ- 
ences apparently  irreconcilable,  Ellsworth  and  Roger 

*A  list  of  the  first  stockholders  will  be  found  in  the  Appendix. 


THE    HARTFORD    BANK  ^j 

Sherman  proposed  and  carried  through  the  most 
important  of  the  three  great  compromises  on  which 
the  convention  finally  united.  The  large  States 
demanded  that  representation  in  Congress  should  be 
proportionate  to  population,  while  the  small  States 
insisted  that  each  should  have  an  equal  vote.  For 
a  month  the  point  was  bitterly  contested.  At  length 
when  the  danger  of  rupture  seemed  most  imminent, 
Ellsworth  and  Sherman  presented  with  such  force 
and  persuasiveness  the  method  pursued  in  making 
up  the  two  houses  of  the  General  Assembly  in 
Connecticut  that  a  majority  voted  to  adopt  the  idea. 
By  the  compromise  each  State  has  two  votes  in  the 
Federal  Senate,  and  in  the  lower  branch  representa- 
tion in  the  ratio  of  numbers. 

Ellsworth  strenuously  opposed  leaving  with  the 
States  the  power  to  emit  bills  of  credit,  and  would 
have  extended  the  prohibition  to  the  federal  govern- 
ment also.  He  was  one  of  the  committee  which 
framed  the  federal  judiciary,  the  crowning  work  of 
the  convention,  which  gave  vitality  to  the  rest  of 
its  proceedings.  Returning  home  he  was  sent  to 
the  State  convention  called  to  ratify  the  instrument. 

Judge  Ellsworth  was  a  member  of  the  Federal 
Senate  from  1789  to  1796,  when  he  became  chief 
justice  of  the  Supreme  Court  of  the  United  States. 
In  1799  President  Adams  appointed  him  envoy 
extraordinary  to  negotiate,  with  others,  a  treaty  of 
peace  with  France.  While  abroad  he  resigned  the 
chief-justiceship  on  account  of   ill  health.     After  his 


.2  HISTORY     OF 

return  Connecticut  imposed  upon  him  various  duties, 
some  of  which  growing  infirmities  compelled  him  to 
decline.     He  died  Nov.  26,   1807. 

In  a  speech  delivered  in  the  Senate,  Feb.  12, 
1847,  John  C.  Calhoun  placed  the  following  estimate 
upon  the  services  of  Mr.  Ellsworth: 

"It  is  owing  mainly  to  the  States  of  Connecticut  and 
New  Jersey  that  we  have  a  federal  instead  of  a  national 
government  —  the  best  government  instead  of  the  worst 
and  most  intolerable  on  earth.  Who  are  the  men  in  those 
States  to  whom  we  are  indebted  for  this  admirable  govern- 
ment? I  will  name  them  —  their  names  ought  to  be  engraved 
on  brass  and  live  forever.  They  are  Chief  Justice  Ellsworth 
and  Roger  Sherman  of  Connecticut,  and  Judge  Patterson  of 
New  Jersey.  The  other  States  further  south  were  blind  — 
they  did  not  see  the  future.  But  to  the  coolness  and  sagacity 
of  these  three  men,  aided  by  a  few  others  not  so  prominent, 
we  owe  the  present  Constitution." 

John  Trumbull  a  century  ago  was  the  most 
popular  poet,  if  not  the  most  popular  writer,  in 
America.  The  manner  and  matter,  the  jingle  and 
wit,  of  "  McFingal "  so  suited  the  taste  and  temper 
of  the  times  that  the  work  soon  passed  through 
over  thirty  editions.  Before  the  Revolution  the 
colonists  regarded  English  poetry  and  belles-lettres 
with  contempt.  Serious  concerns  pressing  upon 
every  side  left  little  leisure  for  the  indulgence  of 
the  fancy  or  the  cultivation  of  the  graces.  At  col- 
lege the  classics,  mathematics,  and  logic  tolerated 
no  intrusion  upon  their  ancient  domains.  After 
graduation,  law,  politics,  and  theology  supplied  food 


THE    HARTFORD    BANK  a-, 

for  the  cravings  of  the  educated.  Trumbull  loved 
literature  for  itself,  and  did  lasting  good  as  an 
apostle  of  the   new   dispensation. 

He  was  born  April  24,  1750,  at  Westbury  (now 
Watertown),  Conn.,  springing  on  both  lines  from 
scholarly  families.  His  father  was  the  clergyman 
of  the  place,  and  his  mother  the  daughter  of  Rev. 
Samuel  Whitman  of  Farmington,  granddaughter  of 
Rev.  Solomon  Stoddard  of  Northampton,  and  great- 
granddaughter  of  Rev.  John  Warham  of  Windsor. 
He  was  remarkably  precocious,  passing  a  successful 
examination  for  college  at  the  age  of  seven,  though 
he  did  not  enter  till  six  years  later.  Having 
graduated  at  Yale  in  1767,  he  remained  as  resident 
and  tutor,  writing  essays  in  Addisonian  style  and 
wooing  the  Muses,  his  first  elaborate  effort  being 
the   "  Progress   of   Dullness." 

In  November,  1773,  he  entered  the  law  office  of 
John   Adams  of   Boston. 

The  first  part  of  "  McFingal "  was  published  in 
Philadelphia  in  1775,  with  the  view  of  goading 
Congress  to  decisive  action.  The  poem  was  not 
finished   till    1782. 

Trumbull  settled  in  Hartford  in  1781,  thence- 
forth dividing  his  time  between  literature,  politics, 
and  law.  Besides  filling  many  minor  positions,  he 
was  made  district  attorney,  judge  of  the  Superior 
Court  and  of  the  Supreme  Court  of  Errors.  For  a 
while  he  was  treasurer  of  Yale  College,  which  con- 
ferred upon  him  the   degree   of   LL.D.     In    1825   he 


..  HISTORY    OF 

moved  to  Detroit,  Mich.,  where,  May  12,  1831,  he 
died  at  the  home  of  his  son-in-law,  Gov.  Woodbridge. 

Chauncey  Goodrich,  eldest  son  of  Rev.  Elizur 
Goodrich,  D.D.,  of  Durham,  Conn.,  was  born  Oct.  20, 
1 759  J  graduated  in  1776,  with  high  honors,  at  Yale 
College,  where  he  taught  two  years  from  1779;  "^^s 
admitted  to  the  bar  and  settled  in  Hartford  in  the 
fall  of  1 78 1.  In  the  lore  of  the  profession  he 
became  an  ardent  and  critical  student,  always  basing 
his  arguments  upon  the  broad  principles  of  the 
science. 

In  1794,  Mr.  Goodrich  was  elected  to  the  lower 
house  of  Congress.  Party  divisions,  heretofore 
crystalizing  around  the  personalities  of  Hamilton 
and  Jefferson,  now  found  more  solid  aliment  in  the 
controversy  started  by  the  Jay  treaty  with  Great 
Britain.  Mr.  Goodrich  took  an  active  part  in  the 
debates,  presenting  his  case  so  exhaustively  that  the 
leader  of  the  opposition,  Albert  Gallatin,  usually 
selected  his  arguments  as  the  texts  for  his  replies. 

Resigning,  in  1801,  he  resumed  the  practise  of 
law  in  Hartford.  From  1802  to  1807,  he  belonged 
to  the  upper  house  of  the  General  Assembly,  and 
was  then  promoted  to  a  seat  in  the  United  States 
Senate.  In  the  stormy  debates  growing  out  of  the 
embargo  and  non-intercourse  acts,  he  ably  presented 
the  views  prevalent  in  New  England.  In  181 2,  he 
was  elected  mayor  of  Hartford,  succeeding  Thomas 
Seymour,  who  had  held  the  place  continuously  from 
the   creation   of  the   office   in    1784.     He  was  holding 


THE    HARTFORD     BANK  ^r 

both  this  position  and  that  of  lieutenant-governor 
at  the  time  of  his  death,  Aug.  i8,  1815.  He  was  a 
member  of  the   Hartford   Convention   in    18 14. 

A  conviction  that  Mr.  Goodrich,  under  all  cir- 
cumstances, must  act  with  strict  impartiality  and 
justice,  gave  him  an  immovable  hold  upon  his 
constituency. 

Enoch  Perkins  was  one  of  the  most  useful  and 
trusted  members  of  the  community.  Persons  near- 
ing  the  end  confided  to  him  the  settlement  of  their 
estates,  and  the  care  of  their  children.  Fair,  just, 
and  well-balanced,  he  was  for  a  long  period  called 
upon  more  frequently  than  any  one  else  in  Hartford 
to  act  as  arbitrator  or  referee  for  the  settlement  of 
all  sorts  of  troubles  and  disputes.  It  goes  without 
saying,  that,  like  others  whose  lives  are  here  briefly 
sketched,  he  often  filled  local  offices,  for  the  most 
competent  men  then  expected  to  devote  their 
energies,  when  invited,  to  the  service  of  the  public. 
As  an  earnest  promoter  of  education,  he  was  long 
the  active  trustee  of  the  Hopkins  Grammar  School, 
and  it  is  said  no  boy  could  gain  admission,  except 
on  his   certificate. 

Mr.  Perkins  was  bom  in  Norwich,  Conn.,  Aug. 
16,  1760,  graduated  at  Yale  College  in  1781,  studied 
law  in  the  office  of  Wm.  Channing  of  Newport, 
R.  I.,  held  a  tutorship  at  Yale,  1784-6,  and,  in 
1786,  took  up  his  permanent  abode  in  Hartford. 
Professionally,  he .  belonged  to  the  class  of  safe 
counselors,  who   neglect   nothing   in   the   preparation 


^5  HISTORY    OF 

of  a  case  in  the  way  of  either  matter  or  fortn.  He 
was  a  member  of  the  commissions  which  revised 
the  statutes  of  Connecticut  in  1795,  and  again  in 
1808,  and  was  prosecuting  officer,  181 2-1 8.  He  died 
August    12,   1828. 

Whether  Hudson  and  Goodwin  cared  or  not  for 
posthumous  fame,  they  unwittingly  built  for  them- 
selves an  imperishable  monument  by  an  honorable 
connection  with  the  oldest  newspaper  on  the  conti- 
nent. Established  in  1764,  the  Connecticut  Courant 
has  long  outlived  all  early  contemporaries.  Before 
the  Revolution,  the  prevalent  spirit  of  discontent 
spoke  through  its  columns.  During  the  long 
struggle  its  courage  never  faltered.  Thenceforward, 
till  the  contest  over  the  constitution  of  18 18  brought 
the  democratic  forces  of  the  State  into  prominence, 
the  paper,  to  the  eminent  satisfaction  of  a  widely- 
scattered  and  trustful  constituency,  voiced  the  con- 
servative convictions  of  New  England  on  matters  of 
morals,  religion,  and  politics.  Mr.  Goodwin's  active 
connection  with  the  Courant  covered  a  period  of 
seventy  years,  and  was  not  fully  closed  by  his  retire- 
ment in  1836.  He  died  May  13,  1844,  "the  oldest 
man  in  the  town,"  having  been  bom  in  1757.  Bar- 
zillai  Hudson  formed  a  double  partnership  in  1779, 
first  by  marriage  with  the  widow  of  Ebenezer 
Watson,  the  late  proprietor,  and  second,  with  George 
Goodwin,  whom  the  widow  had  already  admitted  to 
a  share  in  the  business.  Mr.  Hudson  withdrew  in 
1815. 


THE    HARTFORD    BANK  .7 

Nehemiah  Hubbard  resided  in  Middletown. 
Bom  in  April,  1752,  at  the  age  of  fourteen  he 
entered  the  store  of  Colonel  Matthew  Talcott,  and 
after  attaining  his  majority  made  several  trips  to 
the  West  Indies,  as  supercargo  and  master.  July  31, 
1776,  he  was  appointed  paymaster  of  the  regiment 
commanded  by  Colonel  Charles  Burrall.  Its  term 
expired  January  19,  1777.  In  May  following.  Gen- 
eral Nathaniel  Greene  appointed  him  deputy  quar- 
termaster for  the  Connecticut  district.  In  Novem- 
ber, 1780,  he  left  the  Continental  service  to  accept 
a  position  under  Colonel  Wadsworth,  contractor  for 
supplying  the  French  army,  and  in  this  capacity 
witnessed  the  surrender  of  Cornwallis.  His  execu- 
tive ability  so  impressed  his  associates  that  Alex- 
ander Hamilton,  while  secretary  of  the  treasury, 
importuned  him  to  take  charge  of  an  institution 
which  he  desired  to  found  for  the  promotion  of 
American  manufactures.  Settling  in  Middletown, 
as  a  merchant,  after  the  war,  he  was  held  in  high 
esteem  for  sound  judgment,  public  spirit,  and 
liberality.  He  was  president  of  the  Middletown 
bank,  1808-22,  retiring  at  the  age  of  seventy,  and 
of  the  savings  bank  from  its  establishment  till  his 
death,  February  6,   1837. 

Oliver  Phelps,  like  many  others,  was  drawn  into 
the  bank  by  army  associations  with  Colonel  Wads- 
worth.  Born  in  Windsor,  Conn.,  in  1749,  he  moved 
in  boyhood  to  Granville,  Mass.,  and  thence,  after 
several  years,  to  Suffield,  Conn.     He  acted  as  deputy 


.g  HISTORY    OF 

for  Colonel  Wadsworth,  in  procuring  supplies  for 
both  the  Continental  and  French  armies.  After  the 
war  he  became  a  member  of  the  general  court,  and 
of  the   Governor's   council   of  Massachusetts. 

New  York  having  ceded  to  Massachusetts  the 
right  of  pre-emption  to  6,000,000  acres  of  land  in  the 
central  part  of  New  York,  Mr.  Phelps  and  Nathaniel 
Gorham  of  Cambridge,  Mass.,  bought,  in  1788,  the 
entire  tract  for  ;^30o,ooo,  payable  in  the  consolidated 
securities  of  Massachusetts,  in  three  annual  install- 
ments. Extinguishing  the  more  primitive  claims  of 
the  Indians  by  purchase,  they  divided  the  territory 
into  townships  and  sections.  Colonel  Hugh  Maxwell 
of  Heath,  Mass.,  aided  in  the  survey.  The  system 
devised  by  these  parties  was  adopted  by  the  United 
States,  and  with  some  modifications  has  been 
retained.  Mr.  Phelps,  though  unable  to  fulfill  the 
terms  of  the  contract,  grew  rich  rapidly,  estimating 
his  wealth,  in    1795,  at   a  million   of    dollars. 

When  the  State,  in  1795,  disposed  of  its  lands 
in  the  Western  Reserve  of  Ohio,  for  $1,200,000,  Mr. 
Phelps  was  the  largest  purchaser.  He  headed  a 
syndicate  of  five  which  invested  $168,185  in  a  single 
block,  giving  a  bond  dated  Sept.  2,  1795,  and  pay- 
able on  demand,  and  a  syndicate  of  six  which 
ventured  $80,000.  He  was  also  a  partner  on  a  third 
bond  for  $85,675. 

The  mania  for  western  land  speculations  was 
hurrying  to  a  crisis.  Not  content  with  the  opera- 
tions   already    mentioned,    Mr.    Phelps    plunged    into 


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THE    HARTFORD    BANK  ^O 

the  "  American  Land  Company,"  the  "  Georgia  Land 
Company,"  etc.,  borrowing  money  and  giving  mort- 
gages, till  the  collapse  brought  him  face  to  face  with 
a  mountain  of  debt  on  one  side,  and  a  mountain  of 
unavailable  assets  on  the  other.  Crushed  in  spirits 
and  health  by  losses,  he  died  February  21,  1809,  at 
Canandaigua,  N.  Y.,  whither  he  had  removed  in  1802. 

Mr.  Phelps  was  the  first  judge  of  Ontario 
County,  and  the  first  member  of  Congress  from 
western  New  York,  serving  from  1803  to  1805.  The 
debts  of  the  estate  were  compromised  in  a  way  to 
save   a  handsome   property  for  the  heirs. 

Noah  Webster,  LL.D.,  as  one  of  the  committee 
of  three,  took  an  active  part  in  procuring  the  charter 
of  the  bank,  but  his  resources  were  then  too  slender 
to  allow  him  to  go  further.  His  labors  for  the 
education  of  English-speaking  peoples  won  gold  as 
well  as  fame,  and,  in  18 17,  we  find  him  the  happy 
owner  of  one  hundred  and  seventy-four  shares  of 
the  stock.  During  the  intervening  years  of  struggle, 
though  no  longer  a  resident  of  the  city,  he  had 
never  forgotten  the   child   of  his   youth. 

Thomas  Tisdall,  an  Irishman,  resigned  the  office 
of  paymaster  in  the  British  army  from  sympathy 
with  the  colonies,  and  settled  in  Hartford,  about 
1778.  The  Gazetteer  of  Connecticut  and  Rhode  Island, 
by  Pease  &  Niles,  published  in  1819,  contains  an 
elaborate  eulogy  of  him,  as  does  the  Hartford  Times 
for  Sept.  8,  18 18.  He  died  Aug.  31,  18 18,  aged 
sixty-one. 
3 


CO  HISTORY    OF 

Peleg  Sanford,  confidential  clerk  of  Colonel 
Jeremiah  Wadsworth,  in  1791,  addressed  to  his 
employer  several  letters  in  regard  to  the  establish- 
ment of  a  bank,  which  are  preserved  in  the  valuable 
collection  of  Mr.  J.  F.  Morris.  Nov.  12th,  he  writes, 
that  he  has  been  sounding  the  minds  of  the  princi- 
pal merchants,  and  has  found  them  favorably- 
inclined  to  the  project.  He  thought  fifteen  or 
twenty  thousand  dollars  in  specie  would  be  sufficient 
to  start  with,  and  enclosed  a  list  of  eight  persons 
and  firms  who  agreed  to  subscribe  to  the  extent  of 
$13,000.  Nov.  30th,  he  reports  progress,  and  in  com- 
menting  on   the   latest   accessions,  adds : 

"It  must  also  be  much  better  than  to  have  the  stock- 
"holders  increased  to  a  great  number,  in  which  case  people 
of  the  description  you  caution  me  against  would  unavoidably 
become  subscribers." 

Unfortunately,  Colonel  Wadsworth's  cautionary 
letter  is  not  in  the  collection,  and  hence  our  curiosity 
in  regard  to  the  qualifications  deemed  essential  for 
admittance   to   the   association   must   go   ungratified. 

Gen.  George  Phillips,  a  subscriber  for  $2,000,  is 
quoted  as  saying  that 

"There  would  be  no  difficulty  in  getting  incorporated  if 
it  was  not  known  that  the  subscription  was  filled,  for  this 
reason,  that  there  would  be  a  number  in  the  Legislature 
who  would  wish  to  become  subscribers,  and  would,  of  course, 
advocate  the  bill  while  they  supposed  they  could  subscribe, 
and,  on  the  contrary,  if  it  was  known  the  subscription  was 
full,  they  would  oppose   it  violently." 


THE    HARTFORD    BANK  ej 

If  an  eye-witness  pictures  the  situation  correctly, 
queer  things  came  to  pass  in  the  shady  passages  of 
the  antique  State  house,  long  before  the  birth  of  the 
railway  lobby,  and  while,  as  yet,  the  robust  virtue 
of  the  lawmaker  is  supposed  to  have  risen  superior 
to  the  faults  and  vices  of  "modern   degeneracy." 

Mr.  Sanford   adds: 

"I  shall  continue  to  stay  any  further  proceedings  till  I 
am  favored  with  your  plan  of  a  bank,  or  have  other  direc- 
tions from  you  on  the  subject.  .  .  .  Twenty  thousand 
dollars  was  only  mentioned  as  a  sum  that  could  probably  be 
obtained,  and  which,  small  as  it  is,  would  yet  answer  a  valu- 
able purpose,  but,  there  is  little  doubt,  S6o,ooo  or  $80,000  can 
be  employed  to  great  advantage,  and  as  there  is  little  danger 
to  be  apprehended  from  a  run  on  the  bank,  I  should  think 
it  most  assuredly  best  to  adopt  the  plan  you  proposed  of 
having  two-thirds  or  three-fourths  of  the  capital  consist  of 
six  per  cents,  or  that  the  directors  be  impowered  to  invest 
such  part  of  the  capital  in  the  public  funds  as  they  shall 
judge  can  be  done  with  safety  from  time  to  time." 

Afterwards,  Mr.  Sanford  formed  a  partnership 
with  Daniel  Wadsworth,  under  the  firm  name  of 
Sanford  &  Wadsworth,  which  was  dissolved,  by 
mutual  consent,  Jan.  10,  1798.  He  then  removed 
to  New  Haven,  and  died  in  April,  1801,  on  the 
passage  from   Charleston  to   New   York. 

Jacob  Ogden  was  a  hardware  and  grocery  mer- 
chant on  State  street.  He  came  from  Newark,  N.  J., 
where  he  was  born  Nov.  10,  1749.  Having  sunk 
considerable  money  in  the  State  House,  he  left  the 
city,  and  in  1804  opened  a  hotel  in  New  Haven. 
He  died   March   30,   1825. 


C2  HISTORY    OF 

Ezekiel  Williams,  Jr.,  elder  brother  of  Thomas  S., 
chief  justice  of  Connecticut,  and  grandson  of  Rev. 
Solomon  Williams  of  Lebanon,  was  born  at  Wethers- 
field,  Dec.  29,  1765,  graduated  at  Yale  College  in 
1785,  and  in  early  manhood  was  a  merchant  in  Hart- 
ford, where  he  was  also  postmaster  from  January, 
1795,  till  1803.  He  was  the  first  to  introduce  marine 
insurance  here,  and  at  the  outset  did  as  much  and 
perhaps  more  than  any  one  else  to  give  the  thoughts 
of  our  people  a  trend  toward  underwriting.  In  this 
connection  more  will  be  said  of  him  elsewhere.  He 
married  Abigail,  daughter  of  Oliver  Ellsworth.  He 
died  Oct.  18,   1843. 

Amasa  Keyes  held  the  rank  of  lieutenant  in  the 
company  of  Capt.  Samuel  McClellan  of  Woodstock, 
which  hastened  to  Massachusetts  after  the  fight  at 
Lexington.  In  April,  1775,  he  was  appointed  one 
of  the  State  commissioners  for  supplying  stores  and 
provisions  for  the  troops  to  be  raised.  In  1776  he 
was  a  captain  in  Maj.  Backus'  regiment  of  light 
horse,  and  took  part  in  the  campaigns  around  New 
York  City.  After  the  war  he  settled  as  a  merchant 
in  Hartford,  and  was  four  times  elected  to  the 
General  Assembly. 

James  Burr,  like  John  Caldwell,  John  Morgan, 
and  others  who  have  passed  under  review,  suffered 
severely  from  the  depredations  of  the  French.  He 
owned  the  brig  Lucy  and  most  of  her  cargo,  which 
was  captured,  March  24,  1798,  on  the  voyage  from 
Demarara    to    New    London,    his    loss    being    estima- 


THE    HARTFORD    BANK  c-y 

ted  at  $18,717.50.  James  Burr  was  the  father  of 
Alfred  E.  and  Franklin  L.  Burr  of  the  Hartford 
Times.  He  was  born  Feb.  18,  1766,  and  died  March 
16,  1848. 

John  Chenevard,  son  of  John  Michael  Chenevard, 
a  native  of  Geneva,  who  settled  in  Hartford  about 
1723,  was  born  July  29,  1733.  He  was  an  active, 
public-spirited  merchant.  Having  been  a  member 
of  the  council  continuously  from  the  charter  of  the 
city  in  1784  till  March,  1799,  he  was  then  elected 
alderman  in  place  of  John  Caldwell,  who  had  also 
served  without  interruption  in  one  or  other  of  the 
boards  during  the  same  period.  As  the  fruit  of 
enterprise  and  thrift  Mr.  Chenevard,  at  his  death, 
October  6,  1805,  left  an  estate  inventoried  at  over 
thirty  thousand  dollars,  which  then  passed  for  a 
large   fortune   in   Connecticut. 

Elisha  Colt,  when  a  lad  of  seventeen,  enlisted  as 
a  private  in  the  Eighth  Connecticut  regiment,  raised 
by  order  of  the  General  Assembly  in  July,  1775, 
and  remained  till  the  expiration  of  its  term  in  the 
following  December.  Later  he  became  clerk  of  his 
uncle,  Peter  Colt,  who  assisted  Col.  Trumbull  as 
supply  agent  in  1776,  and  was  appointed  by  Con- 
gress, Aug.  9,  1777,  deputy  commissary-general  of 
purchases  for  the  eastern  department,  but  resigned 
in  1780  to  accept  a  position  under  Col.  Wadsworth, 
for  the  supply  of  the  French  forces  in  America. 
After  the  war  Elisha  Colt  was  for  a  time  a  whole- 
sale and  retail  dry-goods  merchant  in  Hartford.     He 


c^  HISTORY    OF 

was  elected  comptroller  of  Connecticut  in  1806,  and 
continued  to  fill  the  place  for  thirteen  years.  When 
the  Society  for  Savings  was  organized  in  18 19  he 
was  appointed  first  treasurer,  and  tradition  says  that 
for  several  months  he  carried  home  the  assets  of 
the  bank  at  night  for  safe-keeping,  and  slept  with 
them  under  his  pillow.  He  was  born  Feb.  26,  1758, 
and  died  Aug.  22,   1827. 

Charles  Hopkins,  son  of  Capt.  Thomas  Hopkins, 
was  a  prominent  merchant  and  importer,  trading 
largely  with  the  West  Indies  and  making  frequent 
trips  to  Europe.  He  was  a  man  of  polished  man- 
ners and  cosmopolitan  ways.  Peter  W.  Gallaudet 
married  his   sister,  Jane   Hopkins. 

Daniel  Wadsworth  long  held  a  conspicuous  place 
in  the  community  from  his  wealth,  benevolence,  and 
the  comparative  elegance  of  his  belongings,  but  is 
chiefly  known  to  the  present  generation  from  the 
munificence  of  his  gifts  to  the  public.  He  was  born 
August  8,  1 77 1,  and  at  the  age  of  twenty-three 
married  Faith  Trumbull,  daughter  of  the  second 
governor,  Jonathan  Trumbull,  but  left  no  children. 
His  father,  Col.  Jeremiah  Wadsworth,  built  for  him 
in  1798  the  house  on  Prospect  street,  now  occupied 
by  the  Hartford  Club,  and  there  he  lived  for  half 
a  century,  having  passed  away  July  28,   1848. 

He  gave  for  the  site  of  Wadsworth's  Athe- 
naeum land  valued  at  $16,200,  and  $9,076  in  cash 
subscriptions  toward  the  building,  to  make  room 
for    which    the    family    mansion,    erected     by    Rev. 


THE     HARTFORD     BANK  e  c 

Daniel  Wadsworth  in  1730,  and  afterwards  occupied 
by  Col.  Jeremiah,  was  torn  down.  He  bequeathed 
to  the  Athenaeum  thirty  paintings  by  Sully,  John 
Trumbull,  Thomas  Cole,  Sharpless,  etc.,  and  a  mar- 
ble bust  of  himself.  The  Connecticut  Historical 
Society  was  also  remembered  with  a  gift  of 
valuable   art  works. 

Mr.  Wadsworth  left  an  estate  appraised  at  $233,- 
193.38.  After  providing  liberal  legacies  and  annu- 
ities for  the  eight  children  and  their  representa- 
tives of  his  sister,  Catherine  (Wadsworth)  Terry, 
the  estate  was  left  in  trust  until  the  death  of  the 
last  survivor  of  the  nephews  and  nieces,  when  it 
was  to  be  distributed  to  their  children  or  legal 
heirs.  This  event  occurred  July  30,  1882.  Although 
during  the  thirty-four  years  of  the  continuance  of 
the  trust,  over  $135,000  had  been  paid  to  the  bene- 
ficiaries from  the  income,  at  the  end  of  the  period 
under  the  management  of  judicious  trustees,  the 
property  had   increased   to  $786,042.20. 

The  foregoing  sketches  do  not  exhaust  the  list 
of  original  stockholders.  Enough  has  been  said  to 
show  the  kind  of  men  who  came  together  to  found 
the  institution.  It  was  not  a  promiscuous  but  a 
selected  body.  From  the  correspondence  between 
Col.  Wadsworth  and  Pelcg  Sanford,  his  confidential 
clerk,  it  is  apparent  that  the  city  and  neighboring 
towns  were  canvassed  with  a  view  to  pick  out  the 
persons  whom  for  various  reasons  it  was  thought 
desirable  to  invite  into  the  association.     Some  doubt- 


r5  HISTORY    OF 

less  declined.  Some  required  urging.  As  a  whole 
they  were  rich  in  character,  in  talents,  in  experi- 
ence, in  memories  of  services  to  the  infant  repub- 
lic, in  almost  everything  esteemed  good  except 
cash.  Amid  prevailing  poverty  it  required  brave 
and  united  efforts  to  provide  the  needed  capital. 
As  we  shall  see,  the  initial  success  gave  a  new 
direction   to  the   thought   and  growth   of  the   town. 


m 


THE    HARTFORD    BANK  cy 


CHAPTER    IV 

EARLY  INCIDENTS  AND  PROGRESS 

VERY  early,  if  not  at  the  start,  the  bank  is  found 
located  on  the  south  side  of  Pearl  street,  a 
few  steps  from  Main.  Such  precautions  as 
the  ingenuity  of  the  times  could  devise  had  been 
taken  for  the  protection  of  its  funds.  The  front 
door  was  divided  into  two  parts,  horizontally.  Both 
halves  were  sheathed  with  iron  plates,  and  secured 
by  heavy  bars.  A  strong,  oak-incased  lock  was 
bolted  upon  the  outer  surface  of  the  upper  section. 
The  chest  was  kept  in  a  subterranean  vault, 
covered  by  a  massive  door  which  was  raised  and 
lowered  by  a  pulley.  Persons  still  living  remember 
the  ring  in  a  beam  overhead,  whence  the  hoisting 
apparatus  was  suspended.  The  chest,  bought  by 
Colonel  Wadsworth  in  New  York,  having  done 
good  service  in  days  less  perilous  to  "safes"  than 
these,  now  reposes  among  the  relics  of  the  Connec- 
ticut Historical  Society.  It  is  of  thin,  wrought  iron, 
two  feet  long,  sixteen  inches  broad  and  high,  with 
the  door  on  top.  A  trained  porter  could  carry  it 
off  without  trouble.  That  neither  the  vault  nor  its 
contents  were  ever  invaded  by  felonious  hands, 
reveals  the  scant  progress  then  made  in  the  art  of 
burglary. 


eg  HISTORY    OF 

In  October,  1838,  long  after  the  bank  had 
removed  to  its  present  quarters,  the  premises  then 
occupied  as  a  hat  store  by  Hoadly  &  Chalker, 
attracted  the  attention  of  a  professional  cracksman. 
As  he  perambulated  the  unfamiliar  streets,  the  iron 
door,  unchanged  through  the  vicissitudes  of  forty- 
six  years,  started  in  his  imagination  a  dream  of 
untold  plunder.  Having  stolen  a  sledge  from  a 
blacksmith's  shop  on  Trumbull  street,  he  returned 
when  the  town  was  buried  in  slumber,  for  the 
execution  of  his  purpose.  Seven  times  he  struck 
the  door,  leaving  seven  deep  dents  to  preserve  the 
record  of  his  prowess,  before  the  barrier  gave  way. 
One  would  suppose  that  the  clangor  breaking  upon 
the  midnight  stillness  would  have  called  a  crowd  to 
the  rescue,  but  echoes  alone  answered  to  the  din. 
Even  the  watchman,  presumed  by  trustful  citizens 
to  be  on  duty  in  the  neighborhood,  asleep  perhaps, 
or  on  a  lark,  or  possibly  afraid,  failed  to  interfere. 
He  afterwards  alleged,  by  way  of  excuse,  that  he 
thought  some  one  in  a  great  hurry  was  trying  to 
call  up  Doctor  Sumner,  who  lived  around  the 
corner.  It  is  pleasant  to  add  that  the  stolen  goods 
were  subsequently  found  under  a  barn  and  recovered. 

Charles  J.  Hoadly,  LL.D.,  has  a  key  belonging 
to  the  original  lock  on  the  outer  door.  It  is  of  brass, 
and  probably  a  duplicate  made  for  the  use  of  one 
of  the  partners  after  the  conversion  of  the  premises 
into  a  store. 

The  bank  began  operations  with  thirty  per  cent. 


THE    HARTFORD    BANK  eg 

of  the  capital  paid  in.  Nothing  survives  to  tell 
what  the  funds  consisted  of.  Were  subscription 
books  opened  to-day  for  the  stock  of  a  corporation, 
large  or  small,  about  ninety-nine  per  cent,  of  the 
installments  would  be  paid  in  checks.  A  little  paper 
currency  with  a  few  dollars  in  coin  would  be  used, 
if  the  shares  were  distributed  widely,  so  as  to 
include  people  of  small  means.  In  1792,  Colonel 
Wadsworth  was,  probably,  the  only  person  in  the 
city  blessed  with  a  bank  account.  Very  little  cur- 
rency was  afloat.  The  bubble  of  Continental  money 
had  exploded  twelve  years  before.  By  the  constitu- 
tion, no  State  was  permitted  to  emit  bills  of  credit. 
An  occasional  bill  from  the  Bank  of  North  America 
strayed  into  Connecticut,  but,  from  extreme  rarity, 
the  specimens  were  more  curious  than  useful.  Silver, 
a  motley  lot,  the  coinage  of  many  nations,  was 
scarce,  and  gold  much  scarcer.  The  money  in  circu- 
lation was  insufficient  to  provide  for  the  current 
exchange  of  commodities,  so  that  traffic,  to  no  small 
extent,  was  thrown  back  upon  the  primitive,  cum- 
brous,  and   costly   methods   of  barter. 

Bearing  on  this  point.  Doctor  Hoadly,  in  the 
"Annals"  read  by  him  Dec.  23,  1879,  ^^  the  cele- 
bration of  the  semi-centennial  anniversary  of  the 
consecration  of  Christ  Church,  cites  a  number  of 
instructive  entries  from  the  original  subscription 
paper,  dated  November  28,  1786,  and  circulated  for 
the  purpose  of  raising  funds  to  build  the  first 
Episcopal   church   in   the  city.     By  the   terms  of  the 


6o 


HISTORY    OF 


agreement  contributions  could  be  made  in  money, 
labor,  or  any  specific  articles.  John  Morgan  gave 
£-i,6,  Jacob  Ogden  £2^,  John  Thomas  ;^20  \os.,  Samuel 
Cutler  £\o,  all  payable  in  building  materials.  Major 
John  Caldwell  promised  ;^io  in  pure  spirit.  If  the 
worthy  founders,  from  lack  of  silver  and  gold,  gave 
rum  for  pious  uses,  they  were  particular  that  the 
quality  should  be  the  best.  John  Chenevard  prom- 
ised one  hogshead  of  molasses  (no  gallons);  Barnabas 
Deane,  ;^io  in  materials  for  building  or  in  rum; 
Noah  Webster,  Jr.,  £7,,  and  redeemed  the  promise 
in  seven  dozen  spelling-books.  The  Postmaster  and 
two  or  three  others  made  small  cash  contributions, 
all  the  rest,  to  the  amount  of  a  little  over  ^300, 
having  been   furnished   in   labor,  materials,  or  goods. 

During  the  following  six  years  the  situation 
did  not  materially  change.  Public  securities  had 
advanced  several  fold  in  value  and  people  were 
more  hopeful;  but  of  actual  cash  there  had  been 
little   increase. 

In  view  of  the  general  conditions  we  may  rea- 
sonably conjecture  that  at  the  outset  the  assets  of 
the  bank  consisted  mainly  of  the  promissory  notes 
of  stockholders  indorsed  by  each  other,  with  a 
moderate  sum  of  silver,  a  slight  sprinkling  of  gold 
drawn  from  old  hoards,  and  possibly  a  few  notes  of 
the  Bank  of  North  America. 

In  his  articles  on  currency  and  banking  in 
Connecticut,  Joseph  G.  Woodward  repeats  a  story 
handed  down  by  parties  who  long  kept  afloat  many 
curious  facts  of  inner  local  history. 


THE    HARTFORD    BANK 


6i 


"One  day  Judge  Ellsworth,  who  had  been  elected  a 
director,  sat  at  the  board  when  notes  were  offered  for  dis- 
count by  directors  who  had  mutually  endorsed  for  one 
another.  Against  his  wish  the  notes  were  approved,  where- 
upon he  took  his  hat  and,  with  the  remark,  '  Mr.  President, 
there  is  a  great  deal  of  hollow  ground  in  Hartford,'  departed 
for  Windsor." 

The  nearer  to  the  date  of  organization  the  more 
abundant  was  such  paper.  Judge  Ellsworth  was  far 
richer  than  most  of  his  associates,  and  having  his 
resources  well  in  hand  did  not  need  to  lean  upon 
others   for   support. 

The  Hartford  Bank  took  the  lead  in  introduc- 
ing the  decimal  system  of  notation  in  Connecticut. 
June  1 6,  1792,  the  directors  resolved  that  the  notes 
to  be  issued  should  be  made  payable  in  dollars,  and, 
August  26th,  that  in  paper  presented  for  discount 
amounts  should  be  expressed  in  dollars  and  cents. 
At  the  time  the  English  method  of  reckoning  by 
pounds,  shillings,  and  pence  was  in  almost  universal 
use.  In  different  States  these  denominations  bore 
widely  different  values.  In  New  England  six  shil- 
lings were  equivalent  to  a  Spanish  dollar,  in  New 
York  eight,  in  Georgia  five,  in  South  Carolina  thirty- 
two  and  one-half,  and  in  Pennsylvania  seven  and 
one-half. 

Under  the  lead  of  Jefferson,  who  was  largely 
indebted  in  the  matter  to  the  studies  of  Gouvemeur 
Morris,  Congress  resolved  in  July,  1785,  that  the 
money  unit  of  the  United   States  be  one  dollar,  and 


52  HISTORY    OF 

that  the  pieces  to  be  coined  should  increase  in  a 
decimal  ratio.  In  August,  1786,  that  body  further 
enacted  that  the  money  of  account,  to  correspond 
with  the  division  of  coins,  proceed  in  a  decimal 
ratio,  and  be  expressed  in  dollars,  dimes,  cents,  and 
mills. 

For  a  long  period  the  reform  progressed  slowly. 
In  the  revised  statutes  published  by  Hudson  & 
Goodwin  in  1796,  and  known  as  the  revision  of  1795, 
the  federal  notation  first  appears  in  our  State  laws. 
At  the  office  of  the  treasurer  of  Connecticut  the 
change  from  the  English  to  the  American  system 
was  made  in  July,  1797.  Up  to  that  time  occasional 
entries  on  the  books  in  dollars  and  cents  were  con- 
verted into  equivalent  values  in  pounds,  shillings, 
and  pence  before  passing  into  the  final  accounts. 
In  many  localities  the  English  nomenclature  was  in 
common   use   till   the   late   civil  war. 

Still  the  seed  scattered  by  the  bank  began  to 
sprout  early,  especially  in  the  minds  of  progressive 
teachers.  Erastus  Root,  A.B.,  of  Hebron,  issued  a 
manual  of  arithmetic  in  1795.  In  expounding  the 
superior  merits  of  the  decimal  system  the  author 
enlivens  the  dryness  of  rules  and  examples  with  a 
touch   of   Fourth   of  July   oratory: 

"It  (the  table  of  federal  money)  is  preferable  to  pounds, 
shillings  and  pence  for  two  very  substantial  reasons.  Firstly, 
it  will  destroy  the  present  perplexing  difference  of  curren- 
cies in  the  different  States ;  and  secondly,  it  is  much  more 
simple  and   easy.    Then   let  us,  I  beg  of   you,    Fellow  Citi- 


THE    HARTFORD    BANK  5- 

zens,  no  longer  meanly  follow  the  British  intricate  mode  of 
reckoning  —  let  them  have  their  own  way  —  and  us,  ours. 
Their  mode  is  suited  to  the  genius  of  their  government  — 
for  it  seems  to  be  the  policy  of  tyrants  to  keep  their  ac- 
counts in  as  intricate  and  perplexing  a  method  as  possible, 
that  the  smaller  number  of  their  subjects  may  be  able  to 
estimate  their  enormous  impositions  and  exactions.  But  Re- 
publican money  ought  to  be  simple  and  adapted  to  the 
meanest  capacity.  This  mode  of  reckoning  may  seem  a 
little  odd  at  first,  but  when  the  coins  of  the  United  States 
come  into  circulation,  it  will  soon  become  familiar." 

John  Sterry  &  Co.  of  Norwich  the  same  year 
(1795)  published  an  arithmetic  by  Consider  and  John 
Sterry,  in  which  they  propose  to  supply  "  that  grand 
comer-stone  of  decimating  all  monies  and  accompts, 
as  required  by  the  law  of  these  United  States, 
thereby  reducing  perplexity  to  simplicity  and  brev- 
ity." 

In  despite  of  the  stand  taken  by  the  federal 
government  it  required  seventy-five  years  for  the 
awkward  English  method  of  reckoning  values  to 
die  out  in  America.  A  still  more  impressive  exhi- 
bition of  the  inveteracy  of  habit,  of  the  annoyance 
and  pain  caused  to  the  ordinary  mind  by  any  at- 
tempt to  break  up  rooted  associations,  may  be 
found  in  the  retention  of  our  artificial  and  arbi- 
trary scales  of  weights  and  measures,  in  the  pres- 
ence of  the  simple,  scientific,  and  every  way  admir- 
able metric  system  of  the  French. 

As  the  ancient  schools  of  philosophy  had  two 
sets    of    doctrines,    the    exoteric    for    the    multitude. 


54  HISTORY    OF 

and  the  esoteric  for  initiates,  so  the  directors  of 
the  bank  drew  tip  one  body  of  rules  for  the  inform- 
ation of  the  public  and  another  for  the  guidance 
of  the  board.  As  already  quoted,  the  first  was  pub- 
lished in  the  Courant.  The  second,  separated  from 
its  twin  by  a  waste  of  unwritten  pages,  was  buried 
in  the  body  of  the  record.  In  the  supplementary 
code,  though  so  carefully  guarded,  nothing  will  be 
found  that  needs  concealment.  Lapses  in  syntax 
and  spelling  will  be  pardoned  to  soundness  of 
matter. 

"  Proposed,  relating  to  Discounting.  That  all  questions 
be  determined  by  Ballot.  That  where  there  is  two  against 
discounting  a  note  (unless  they  withdraw  their  objection)  no 
discount  to  be  made. 

"  A  note  once  refused  not  to  be  tryed  again. 

"Any  person  not  punctually  paying  his  note  when  due, 
either  as  Signer  or  endorser,  will  be  refused  any  further 
discount.  Any  person  Suffering  his  note  to  be  Sued,  is  to 
have  his  name  posted  in  the  Bank. 

"No  reason  to  be  given  out  of  the  bank  for  the  re- 
fusing a  Discount.  What  passes  in  the  bank  not  to  be 
spoke  on  at  any  other  place. 

"Approved  &  agreed  to  2nd  Augt,  1792." 

To  pay  the  debenture  of  the  General  Assembly 
and  other  demands,  the  State  of  Connecticut,  Octo- 
ber 28,  1793,  for  the  first  time  discounted  a  bank 
note.  The  obligation  amounted  to  ;^  1,200,  or  $4,000, 
and  ran  for  sixty  days.  It  was  hoped  that  suffi- 
cient collections  on  the  current  tax  of  i3^</.  would 
be   made    to    meet    the   paper  at  maturity.     By   the 


THE    HARTFORD    BANK  51- 

fifth  of  December,  however,  only  £^22,  135.  had  been 
received.  Solicitous  for  the  credit  of  the  State, 
Andrew  Kingsbury,  treasurer,  on  that  date  issued  a 
circular  notifying  the  several  sheriffs  and  collectors 
that  the  debt  to  the  Hartford  Bank  fell  due  the 
28th  of  the  month,  and  urging  them  to  forward 
all  moneys  collected  by  that  time.  He  tells  them 
that  promptness  "may  possibly  save  the  expense  of 
another  discount,  and  as  an  accommodation  to  col- 
lectors, Hartford  and  the  United  States  Bank  bills 
will  be  received  for  taxes  until  furthur  informa- 
tion." 

During  the  next  three  weeks  the  appeal  pro- 
duced only  ;^8,  gs,  Sd.  December  27th,  Mr.  Kings- 
bury renewed  the  paper  to  the  extent  of  ^^675,  iSj, 
and  the  second  note  was  taken  up  February  nth, 
when  the  deposits  from  time  to  time  had  become 
sufficient   for  the   extinguishment  of  the   debt. 

For  a  time  the  bills  of  the  bank  won  confi- 
dence slowly,  especially  in  rural  communities.  Not 
even  the  character  and  wealth  of  the  owners  and 
managers  could  at  once  overcome  the  distrust  at- 
tached to  paper  money.  The  experience  of  the 
generation  then  emerging  from  the  shadows  of  the 
Revolution  had  been  too  bitter  to  be  soon  forgot- 
ten. The  faith  of  the  colonies  in  the  efficacy  of 
the  emissions  sent  forth  under  the  authority  of 
Congress  at  the  beginning  of  the  struggle,  came  to 
be  equaled  only  by  their  disgust  for  the  stuff  at 
the  end. 


56  HISTORY    OF 

All  along  the  descent  toward  the  bottomless 
abyss,  till  either  self-deception  or  the  deception  of 
others  ceased  to  be  possible,  patriots,  both  in  and 
out  of  Congress,  with  a  vehemence  and  frequency- 
proportionate  to  the  growing  desperation  of  the 
prospect,  had  in  ingenious  variety  of  iteration,  de- 
clared an  unshaken  belief  in  the  redemption  of 
every  dollar.  At  a  time  when  the  laws  of  money 
were  little  understood  by  legislators,  and  when  the 
multitude  looked  for  guidance  to  the  utterances  of 
favorite  leaders,  it  is  not  strange  that  the  Ameri- 
can people  learned  to  doubt  whether  any  kind  of 
paper  currency,  except  for  the  moment  and  by  ar- 
tifice, could  be  maintained  on  a  parity  with  coin. 

Locally  the  distrust  was  prolonged  by  the  ac- 
tion of  Connecticut  in  putting  out  indents  for  in- 
terest on  the   State   debt.     The   form   ran  thus : 

"  For  the  payment  of 

No. Comptroller's  Office  178  (or   179    ) 

I  hereby  certify  that  is  entitled  to  receive 

the  sum  of  Lawful  money,  out  of  any  funds 

appropriated  for  the    payment  of   interest   on  the  liquidated 
Debt  of  the  State  of    Connecticut. 

£  Comptroller." 

These  indents,  grazing  if  not  overlapping  the 
constitutional  prohibition  in  regard  to  the  emission 
by  the  states  of  bills  of  credit,  continued  to  be 
issued  in  diminishing  quantities  till  well  into  the 
nineties,  were  receivable  for  taxes,  and  in  a  lim- 
ited way  circulated  as  money  at  varying  rates  of 
discount. 


THE    HARTFORD    BANK  5^ 

When  the  farmer  was  offered  for  his  produce 
the  bills  of  the  new  bank  he  was  expected  to 
quote  a  little  household  wisdom  about  "the  burnt 
child,"  and  to  express  a  preference  for  silver,  often 
in  terms  too  strong  to  leave  the  least  doubt  in 
regard  to  his  meaning.  Meanwhile,  the  friends  of 
the  institution,  as  occasion  offered,  scattered  broad- 
cast facts  and  assertions  intended  to  inspire  confi- 
dence. Piles  of  coin  were  temptingly  displayed 
behind  the  counter.  Bills  presented  by  countrymen 
were  redeemed  with  smiling  alacrity.  Having  got- 
ten the  cash  so  easily,  before  leaving  town  they 
were  often  persuaded  to  change  back  by  a  conven- 
ient "  mutual  friend,"  many  of  that  serviceable  fra- 
ternity being  on  the  alert  to  inject  missionary  work 
wherever  it  promised  to  do  good.  Gradually  the 
course  of  the  bank  in  keeping  every  promise  to 
the  letter  conquered  the  distrust  produced  by  the 
miserable  fate  of  colonial  and  continental  issues, 
and  so  firmly  established  its  credit  that  for  three 
generations  the  wildest  financial  panic  has  not 
caused  a  tremor  in  the  structure.  "  As  sound  as 
the  old  Hartford  Bank "  early  in  the  century  be- 
came a  proverb  not  only  in  the  Connecticut  Valley, 
but  among  the  settlers  on  the  shores  of  Lake  Erie 
and    beyond. 

In  one  direction  the  necessity  of  securing  a  good 
name  for  the  bills,  by  first  deserving  it,  may  have 
acted  as  a  salutary  restraint.  By  the  charter,  "  privi- 
leges" were   conferred  which  no  banker  would   now 


58  HISTORY    OF 

ask  or  government  grant.  Section  21  enacts,  "That 
said  corporation  shall  not  issue  their  notes  or  bills, 
to  an  amount  exceeding,  in  the  whole,  fifty  per  cent, 
over  and  above  the  capital  stock  of  said  bank,  and 
beyond  the  amount  of  monies  actually  deposited  for 
safe   keeping  in  said  bank." 

An  obligation  payable  on  demand  was  thus  per- 
mitted to  rest,  in  part,  for  security  upon  another 
obligation  of  the  same  party,  also  payable  on 
demand.  We  hear  occasionally  of  some  plausible 
fellow  who  contrives  to  live  upon  the  interest  of  his 
debts  —  a  style  of  financiering  here  unconsciously 
invited  by  the  thoughtless  complaisance  of  the  legis- 
lature, but,  in  this  case,  never  abused.  The  latitude 
given  the  corporation,  like  the  longitude  of  the  land 
grants  from  Charles  II,  sprang  from  unsophisticated 
lack  of  knowledge  on  the  part  of  all  concerned. 
While  the  managers  were  opening  channels  for  the 
currency  of  the  bank,  they  were  also  learning  in  the 
school  of  experiment,  the  only  school  then  within 
reach,   the   primary  principles   of  the  business. 

The  steel  plates  in  early  use  were  engraved  by 
Deacon  Abner  Reed  of  East  Windsor,  and  for  a 
time  the  notes  were  printed  in  his  shop  on  a  hand 
press.  After  the  erection  of  the  present  bank  build- 
ing, the  printing  was  done  on  the  second  floor.  It 
is  difficult  for  the  present  generation  even  to  con- 
ceive that  less  than  a  hundred  years  ago  mechanical 
work  of  the  highest  excellence  then  attainable  was 
executed   in   isolated  rural  villages. 


u 


THE    HARTFORD    BANK  5g 

The  directors  and  stockholders  of  the  bank 
appear  among  the  prominent  figures  in  a  movement, 
divided  into  several  stages,  which  proceeded,  halt- 
ingly at  first,  but  afterwards  with  an  energy  that, 
though  costly  to  Connecticut  in  drains  upon  the  old 
puritan  stock,  communicated  a  distinctive  type  and 
an  invaluable  element  to  much  of  the  new  civiliza- 
tion  advancing  upon  the  west. 

By  the  charter  of  1662,  the  colony  was  bounded 
on  the  west  by  the  South  Sea,  or  Pacific  Ocean. 
Subsequent  patents  to  James,  the  brother  of  Charles 
II,  and  to  William  Penn,  carved  from  the  grant  the 
southeastern  angle  of  New  York,  and  a  strip  extend- 
ing southward  over  sixty  miles  from  the  northern 
border  of  Pennsylvania.  After  a  bitter  struggle,  the 
claims  of  Connecticut  to  the  lands  lying  in  Pennsyl- 
vania were  g^ven  up  in  1782.  In  1786,  Connecticut 
ceded  to  the  United  States  her  title  and  interest  to 
the  western  domain  claimed  under  the  original 
charter,  reserving  a  tract  bounded  on  the  east  by 
Pennsylvania,  on  the  south  by  the  forty-first  parallel, 
on  the  west  by  a  line  parallel  to  the  western  border 
of  Pennsylvania,  one  hundred  and  twenty  miles  dis- 
tant from  it,  and  on  the  north  by  the  line  marking 
42°  2'  of  north  latitude.  The  tract  contained  a  great 
many  square  miles  of  the  waters  of  Lake  Erie,  and 
somewhat  less  than  three  million  acres  of   land. 

In  1792,  the  assembly  granted  half  a  million 
acres  from  the  western  end  of  the  reserve  to  certain 
persons  living  near  Long  Island  Sound  as  indemnity 


yQ  HISTORY    OF 

for  property  of  theirs  burned  by  the  British,  and 
hence  known  as  "  fire  lands."  Citizens  of  a  specu- 
lative turn,  intoxicated  by  the  enormous  profits 
accruing  from  the  appreciation  of  government  stocks 
through  the  success  of  Hamilton's  funding  scheme, 
and  looking  about  for  further  opportunities,  kept  up 
a  constant  agitation  in  favor  of  selling  the  residue 
of  the  property.  To  enlist  the  powerful  influence 
of  the  established  or  Congregational  Church,  in  1791 
a  bill  was  introduced,  but  not  passed,  to  distribute 
the  proceeds  of  the  proposed  sale  among  the  several 
ecclesiastical  societies  for  the  support  of  the  ministry, 
thus  dispensing  with  a  portion  of  the  tax  levied  for 
their  maintenance.  Two  years  later  the  scope  of 
the  measure  was  enlarged  so  as  to  embrace  churches 
of  all  denominations,  the  avails  ''to  be  by  them 
applied  to  the  support  of  their  respective  ministers 
or  preachers  of  the  gospel  and  schools  of  education," 
under  rules  to  be  adopted  by  the  assembly.  As 
thus  doctored,  the  scheme  was  carried  through  the 
lower  house  by  a  majority  of  thirteen,  and  through 
the  upper  house   almost  unanimously. 

The  law  provoked  discussion,  —  warm  in  the 
pulpit,  hot  in  the  press,  and  stormy  often  in  the 
informal  debating  clubs  that  met  nightly  at  country 
groceries.  It  went  down  in  the  tempest,  and  in 
May,  1795,  a  substitute  was  passed  devoting  the 
avails  to  the   establishment   of  our  school   fund. 

A  sale  of  the  lands  for  $1,200,000  was  con- 
summated   the    following    November    to    a    syndicate 


THE    HARTFORD    BANK  ^I 

represented  by  thirty-five,  who  gave  thirty-six  bonds 
to  secure  the  purchase  money.  The  principal  fell 
due  Sept.  2,  i8(X),  and  bore  interest  at  the  rate  of 
six  per  cent,  per  annum  from  Sept.  2,  1797,  except 
of  the  bond  of  Oliver  Phelps  and  others  for  $168,185, 
which,  on  account  of  the  magnitude  of  the  sum, 
viewed  in  connection  with  the  uncertainty  of  human 
events,  was  voluntarily  given  on  demand. 

In  the  "  Connecticut  Land  Company,"  at  once 
organized  by  the  purchasers  for  the  purpose  of  buy- 
ing Indian  titles  and  of  surveying  and  selling  the 
property,  several  of  the  leaders  were  also  active  in 
the  management  of  the  Hartford  Bank.  Two  of  the 
three  trustees  selected  to  hold  and  convey  the  lands 
for  the  common  benefit  were  John  Caldwell  and 
John  Morgan.  Enoch  Perkins  was  first  and  Ephraim 
Root  second  secretary.  From  the  inception  of  the 
scheme  onward  the  daring  genius  of  Oliver  Phelps 
enlisted  recruits,  heightened  the  enthusiasm  of  the 
zealous,  and  steadied  the  wavering.  Nehemiah  Hub- 
bard, Elias  Morgan,  Timothy  Burr,  Peleg  Sanford, 
and  James  Bull  were  connected  with  both  enter- 
prises. Many  other  stockholders  of  the  bank  appear 
on  the  bonds  given  to  the  State,  and  some  of  these, 
though  nominally  sureties,  had  an  interest  in  the 
venture. 

Early  events  failed  to  meet  the  expectations  of 
the  promoters.  Troublesome  questions  of  jurisdic- 
tion arose.  Governor  St.  Clair  tried  to  extend  the 
authority  of   Ohio   over   the   purchase.      The   settlers 


^2  HISTORY    OF 

resisted,  and  in  October,  1797,  the  stockholders  ap- 
pealed to  Connecticut  for  "  suitable  laws  ...  to  be 
administered  at  the  sole  expense  of  the  proprietors." 
The  State  declined  to  interfere,  except  to  authorize 
her  Senators  in  Congress  to  execute  a  deed  releasing 
to  the  United  States  the  jurisdiction  of  the  Reserve. 
The  proposition  was  duly  submitted  at  the  next 
session,  but  failed  through  a  disagreement  of  the 
two   houses. 

Meanwhile  difficulties  thickened  around  the  com- 
pany. Parties  wishing  to  emigrate  declined  to  buy 
in  a  region  without  government  and  threatened 
with  still  more  serious  disputes  between  contestants 
for  the  right  to  govern.  Owners  hesitated  to  sell 
so  long  as  no  legal  machinery  existed  for  enforcing 
payments.  An  ominous  cloud,  too,  hung  over  the 
title.  By  many  the  claims  of  Connecticut  to  the 
Reserve,  derived  from  the  charter  of  Charles  II, 
were  considered  too  nebulous  to  sustain  her  pre- 
tentions. Hence  doubt  tainted  every  conveyance 
in  the  district.  Besides,  the  notes  given  for  the 
property  were  hastening  to  maturity.  Finally,  after 
years  of  struggle,  a  bill  passed  both  houses  and  was 
approved  by  President  Adams,  April  28,  1800,  which 
closed  the  controversy  by  establishing  the  title  to 
the  soil  through  the  deed  from  Connecticut.  As  a 
part  of  the  settlement  the  State  relinquished  to  the 
Federal  government  forever  all  claims  to  territory 
lying  westward  of  the  eastern  boundary  of  New 
York. 


THE    HARTFORD    BANK  y^ 

From  the  interlocking  relations  of  able  and 
determined  men  to  the  two  associations,  we  can  see 
in  outline  how  the  bank  aided  the  Land  company 
in  the  contest  carried  on  with  unfaltering  purpose 
but  varying  success,  now  before  the  Legislature  and 
now  before  Congress,  to  establish  the  title  given 
by  Connecticut.  Always  open  during  the  day,  the 
directors*  room  offered  a  convenient  rallying  point 
where  the  keenest  minds  of  the  State  could  come 
together  to  discuss  the  situation,  to  repair  broken 
defenses  and  to  contrive  new  plans  of  attack.  Here 
converged  the  lines  of  intelligence  from  different 
parts  of  the  field,  and  here  in  emergencies  timely 
loans   provided  the   sinews   of  war. 

On  the  settlement  of  the  controversy  which  gave 
certainty  to  titles,  and  established  local  government 
within  the  Reserve,  there  began  an  exodus  from 
Connecticut  which  threatened  to  depopulate  the 
State.  A  coast  line  tempting  to  maritime  adven- 
ture was  then  our  main  point  of  advantage.  Manu- 
factures, too  feeble  to  attract  capital,  or  to  enlist 
the  talents  of  the  brainy,  afforded  employment  to 
few.  From  Europe  the  flow  of  emigration  had 
hardly  begun.  A  soil,  ungrateful  at  best,  seemed 
trebly  sterile  in  comparison  with  the  exuberant  fer- 
tility of  the  broad  acres  temptingly  advertised  by 
the  Land  company.  A  rage  for  moving  seized  rich 
and  poor  alike.  To  go  became  the  fashion.  No 
prophet  protested  in  the  name  of  the  counter-charms 
of  New  England.     Explorers  having  made  the  jour- 


y.  HISTORY    OF 

ney  and  secured  new  homes  returned  to  sell  their 
ancestral  farms.  Numerous  conveyances  describe 
the  grantors  as  residents  of  Ohio.  Young  people 
in  their  plays  at  social  gatherings  marched  to  rude 
melodies  which  taught  them  to  dream  that  toward 
the  setting  sun  lay  an  earthly  paradise  with  gates 
open  to  welcome  them.  From  hill  and  valley  the 
procession  hurried  away.  To-day  many  of  our  rural 
towns  are  scarred  and  paralyzed  by  an  outflow 
which  has  built  up  the  continent  to  no  small  degree 
at  their  expense.  From  the  year  1800  to  1840  the 
population  of  Connecticut  crawled  up  from  251,002 
to  309,978,  —  a  gain  of  twenty-three  and  one-half  per 
cent,  in  forty  years,  or  a  trifle  over  one-half  of  one 
per  cent,  per  annum. 

Meanwhile  the  Reserve  fattened  on  the  prodigal 
gifts  of  her  parent.  The  process  of  transplanting 
quickened  the  mental  and  moral  activities  of  the 
Puritan  stock.  Freed  from  the  intolerant  and 
repressive  conservatism  that  then  dominated  the 
religion  and  politics  of  Connecticut,  thrown  into  a 
tumult  of  ceaseless  agitation,  the  emigrants  became 
peculiarly  receptive  of  new  ideas.  In  the  Reserve 
was  organized  the  most  intense  and  persistent 
crusade  against  slavery.  Through  the  Reserve  ran 
the  main  trunk  of  the  underground  railway  from 
bondage  to  freedom,  and  the  hunted  fugitive  found 
in  every  settler  a  friend.  Here,  as  an  inherited 
theology  lost  its  grimness,  humanity  grew  more 
tender,    and    conscience    learned    to    look    more    to 


THE    HARTFORD    BANK  yc 

reason  and  less  to  authority  for  the  sanctions  of 
duty.  Here  colleges  were  thrown  open  to  girls, 
and  women  were  given  an  equal  chance  with  men 
to  equip  themselves  for  the  battle  of  life.  In  a 
development  so  swift  and  many-sided,  much  fanati- 
cism was  inevitable,  but  its  evanescent  forms  have 
left   few  traces   of  evil  to  mar  the  good. 

June  12,  1794,  the  directors  "voted  that  the 
sum  of  eight  hundred  dollars  be  allowed  H.  Merrill, 
as  a  full  compensation  for  his  services  as  cashier, 
posting  the  books  and  doing  all  the  clerkship  neces- 
sarily connected  with  the  business  of  the  bank,  for 
the  term  of  one  year,  commencing  the  13th  day  of 
June,  1794,  to  be  paid  quarterly."  The  same  day 
they  also  voted  "  that  the  sum  of  thirty  dollars  be 
allowed  the  cashier  as  a  compensation  for  employing 
a  runner  the   two  years  past." 

May  24,  1 796,  the  directors  resolved  that  from 
the  increase  of  business  it  was  deemed  expedient  and 
necessary  to  enlarge  the  capital  stock  to  the  sum 
of  $160,000,  and  that  to  raise  the  additional  $60,000 
a  subscription  be  opened  under  the  superintend- 
ence of  the  board.  As  the  limitations  on  the  num- 
ber of  shares  that  could  be  held  by  a  single  per- 
son or  corporation,  and  on  the  voting  privileges  of 
the  larger  owners,  stood  in  the  way  of  the  success 
of  the  project,  John  Caldwell  and  William  Mosely 
were  requested  to  apply  to  the  General  Assembly, 
then  in  session,  for  a  modification  of  the  charter. 
Before  the  end  of  the  month   the   legislature   passed 


y5  HISTORY    OF 

an  act  permitting  any  person,  co-partnership,  or 
body  politic  to  subscribe  for  and  hold  any  number 
of  shares,  and  allowing  to  every  stockholder  one 
vote   for  each   share   held. 

Evidently  bank  stocks  had  not  yet  become  pop- 
ular with  investors,  for  the  public  displayed  a  man- 
ifest reluctance  to  accept  the  privilege.  New  shares 
were  absorbed  to  the  value  of  $24,400  in  1796 ; 
$9,200  in  1797 ;  and  $4,800  in  1798,  making  a  total 
increase  of  $38,400  in  three  years.  Then  for  a 
period  the  movement  halted.  Suddenly  in  March, 
1802,  with  little  apparent  effort,  $69,200  was  added 
to  the  capital,  raising  it  to  $207,600.  Steady  and 
remunerative  dividends  had  established  the  institu- 
tion  firmly   in   the   confidence   of  the   public. 

By  the  introduction  of  stricter  rules  the  bank 
was  enforcing  upon  the  community  habits  of  prompt- 
ness and  punctuality.  Stringent  measures  were  re- 
quired to  put  an  end  to  the  old  slipshod  way  of 
meeting  obligations.  May  17,  1798,  the  board  "voted 
that  in  every  Instance  when  a  Note  remains  un- 
paid (the  three  days  of  grace  having  expired),  it 
shall  be  the  duty  of  the  cashier  to  give  immedi- 
ate notice  to  the  indorser.  In  case  the  note  is  not 
paid  within  twenty-four  hours  after  such  notice,  that 
the   note  be   put  immediately  in   suit." 

At  the  recurrence  of  the  annual  meeting  in 
June,  1799,  Hezekiah  Merrill  declined  a  reappoint- 
ment as  cashier.  At  an  earlier  period  he  had  been 
an  "  apothecary  and    bookseller,   at    the    sign   of    the 


THE    HARTFORD    BANK  7^ 

Unicorn  and  Mortar,  a  few  rods  south  of  the  court- 
house." His  appetite  for  banking  was  probably  ac- 
quired by  dealings  in  public  securities  at  a  time 
when  dazzling  profits  rewarded  the  bold  operator. 
Soon   after  his   retirement,  he   opened  a  grocery. 

Normand  Knox  succeeded  Mr.  Merrill  at  a  salary 
of  $800  per  annum,  payable  quarterly.  His  yearly 
compensation  was  raised  to  $900  in  June,  1800,  and 
to   $1,000  a  year  later. 

During  the  Revolution,  under  the  protection 
and  patronage  of  the  British  government,  it  was 
claimed,  counterfeiters  had  aggravated  the  discredit 
and  hastened  the  overthrow  of  the  continental  cur- 
rency. Later  the  fraternity  turned  its  attention  to 
the  issues  of  various  banks.  The  engraving  on  the 
genuine  was  primitive  and  easily  imitated.  The 
Hartford  Bank  made  vigorous  efforts  to  protect  the 
public.  June  28,  1802,  the  directors  "voted  that 
upon  the  exhibits  and  representations  made  by  Capt. 
George  Woodward  of  his  exertions  in  detecting  a 
number  of  persons  engaged  in  counterfeiting  the 
Bank  notes  of  this  Bank,  the  cashier  pay  Capt. 
Woodward  one  hundred  and  fifty  dollars  for  his 
services." 

During  the  last  decade  of  the  eighteenth 
century,  through  its  new  municipal  government, 
Hartford  began  to  introduce  the  primary  con- 
veniences of  city  life  and  to  repress  the  nuisances 
left  behind  by  the  slow  recession  of  agriculture. 
Graveled  sidewalks  came  in  with  the  bank,  and 
adjoining  proprietors  were  empowered  to  fence  them 


yg  HISTORY    OF 

off  from  the  highway  by  posts  and  a  single  rail. 
Any  person  damaging  or  driving  on  a  foot  passage 
was  subject  to  fine.  From  time  to  time  various 
regulations  were  adopted  for  the  prevention  and 
extinguishment  of  ^  fires.  The  wardens,  distinguish- 
able at  fires  by  painted  caps  and  white  wands  "at 
least  five  feet  in  length,"  were  required  to  make 
careful  inspections  and  given  ample  power  to  re- 
move causes  of  peril.  The  common  council  went 
doggedly  to  work  to  put  an  end  to  the  pasturage 
of  streets  by  horses  and  cattle.  Swine  in  and  near 
the  highways,  and  especially  as  kept  in  great  num- 
bers at  the  gin  distillery  of  Norman  Butler  &  Co. 
on  Front  street,  presented  a  series  of  object-lessons 
that  brought  the  sense  of  decency  to  the  aid  of  the 
authorities.  Still  step  by  step  the  metamorphosis 
from  farm  to  town  met  obstinate  resistance  from 
the  agricultural  interest.  Thomas  Y.  Seymour  was 
appointed  first  city  auditor  in  1794,  with  authority 
to  adjust  the  accounts  of  the  treasurer  and  to  draw 
orders  for  the  payment  of  demands  against  the 
corporation.  He  was  required  not  only  to  present 
a  full  statement  to  the  annual  meeting,  but  also  to 
explain  at  the  same  time  the  principles  on  which 
all  accounts  had  been  adjusted  by  him.  In  1796  the 
office  of  city  attorney  was  created,  and  was  filled 
first  by  Enoch  Perkins.  The  same  year  a  city 
market  was  ordered  on  Central  Row.  On  many 
sides  were  seen  evidences  of  public  spirit  striving 
to  make  the  young  city  a  comfortable  place  of 
residence. 


THE    HARTFORD    BANK  yg 


CHAPTER    V 

OCCUPANCY  EXCLUSIVE  BUT  BENEFICENT 

HARTFORD  prospered  in  the  decade  following 
the  establishment  of  the  bank.  Her  popula- 
tion increased  thirty  per  cent.,  the  gain  for 
the  State  at  large  slightly  exceeding  five.  Progress 
was  tranquil  and  unmarked  by  sensational  incidents. 
The  fertile  valley  of  the  Connecticut  continued  to 
yield  bountiful  harvests,  and  the  surplus  in  the  form 
of  grain,  horses,  cattle,  beef,  and  pork,  was  largely 
brought  hither  for  sale  and  export.  In  the  indus- 
trial field  appear  the  beginnings  of  permanence.  In 
1794  Normand  Smith  laid  the  foundations  of  the 
prosperous  firm  now  known  as  Smith,  Bourn  &  Co. 
But  the  most  potent  agency  in  upbuilding  the 
town  was  the  bank  itself.  Before  its  formation,  as 
we  have  seen,  the  -hardships  inseparable  from  the 
prevalent  method  of  conducting  exchanges  by  bar- 
ter, had  become  unbearable.  Merchants  held  on 
tenaciously  to  the  little  cash  afloat,  for  each  could 
resort  only  to  his  private  hoard  in  case  of  emer- 
gency. Lenders  were  few  and  reserves  small. 
Hardly  any  one  held  a  position  to  take  advantage 
of  opportunities  for  exceptional  profit,  which  the 
possession   of  ready  money  often   affords. 


8o 


HISTORY    OF 


The  bank  soon  changed  the  whole  situation  by- 
large  additions  to  the  aggregate  financial  resources 
of  the  community,  and  by  the  economizing  pro- 
cesses introduced  through  its  machinery.  Traders 
found  that  a  credit  on  its  ledger  was  more  conve- 
nient and  safe  than  cash  in  the  till,  and  hence 
intrusted  their  funds  to  its  custody.  Experience 
taught  the  managers  that  about  two-thirds  of  the 
deposits  could  be  loaned  with  safety,  and  to  that 
extent  the  bank  created  a  new  capital,  resting  in 
part  on  things  unseen  and  incorporeal,  but  itself 
none  the  less  real  and  potent.  As  the  prompt 
redemption  of  bills  obliterated  the  distrust  caused 
by  the  depreciation  and  collapse  of  public  issues, 
the  volume  of  circulation  expanded,  and  at  least 
two-thirds  of  this  also  was  a  clear  gain  to  the  cash 
resources  available   for  local  uses. 

Merchants  and  others  learned  to  adjust  by 
checks,  balances  arising  on  mutual  accounts.  A 
large  proportion  of  domestic  settlements  was  made 
by  transfers  of  credit  on  the  bank  ledger  without 
the  handling  of  a  dollar.  Thus  the  institution  put 
in  operation  a  set  of  appliances  that  manifolded  the 
volume  and  effectiveness  of  the  funds  within  reach 
of  the  community.  Since  money  constitutes  the 
most  generalized  and  efficient  form  of  value,  the 
introduction  of  banks  immensely  facilitated  the 
marvelous  growth  which  has  marked  the  westward 
march  of  empire.  At  different  times  in  almost 
every  part  of  the   country,   ignorance,   rashness,  and 


THE     HARTFORD    BANK  gj 

dishonesty  of  management  have  caused  incalculable 
losses  to  the  public,  but  such  disasters,  in  every 
instance  avoidable,  prove  no  incurable  malady  in 
the  system,  but  illustrate  with  another  class  of  evi- 
dence the  danger  of  intrusting  to  folly  or  knavery 
the  manipulation  of  machinery  that  calls  day  by 
day  for  prudence,  foresight,  and   integrity. 

In  the  adjustment  of  accounts  between  the  Con- 
federation and  the  States  the  commissioners  made 
their  final  report  in  December,  1793,  crediting  Con- 
necticut with  a  balance  of  $619,121.  By  act  of 
Congress  the  creditor  States  on  the  sums  found  due 
to  them  were  allowed  interest  from  Dec.  31,  1789,  at 
the  rate  of  four  per  cent,  per  annum,  and  the  several 
amounts,  bearing  three  per  cent,  annual  interest, 
were  placed  to  their  credit  on  the  books  of  the 
United  States  treasury.  Provision  was  made  for 
funding  the  principal  in  United  States  stocks,  on 
seven-ninths  of  which  the  government  reserved  the 
option  to  redeem  two  per  cent,  yearly  at  its 
convenience. 

Heavy  expenditures  prevented  reduction  of  the 
public  debt  till  the  accession  of  Jefferson  to  the 
presidency.  Gallatin,  who  then  became  secretary  of 
the  treasury,  applied  the  surplus  revenues  so  ener- 
getically to  its  redemption  that  by  1803,  Connecticut 
was  called  upon  to  provide  for  the  disposition  of  the 
sums  thus  paid  back  to  her. 

An  excellent  understanding  seems  to  have 
existed  between  the  State  authorities  and  the  man- 
agers of  the  bank.     April   26,   1803,  the   directors 


82  HISTORY    OF 

"  Resolved  that  this  Bank  in  conjunction  with  the  other 
Banks  in  the  State  in  case  they  agree,  will  in  proportion  to 
the  capitals  of  each  receive  from  the  state  all  the  monies 
it  now  has  on  hand  and  also  all  that  it  may  hereafter  have, 
accruing  from  the  reimbursement  of  the  Capital  of  its  Stock 
of  the  U.  States,  as  fast  as  the  same  comes  into  the  hands 
of  the  State,  either  on  Loan  at  6  per  cent,  per  annum,  or  in 
payment  of  shares  to  be  issued  to  the  State.  And  that  John 
Caldwell,  Ephraim  Root,  John  Morgan,  and  Ezekiel  Williams, 
Jr.,  be  a  committee  to  confer  with  committees  from  the  Said 
other  Banks,  and  in  conjunction  with  them  to  agree  upon 
and  take  the  necessary  measures  for  carrying  the  foregoing 
resolution  into  effect." 

There  were  at  the  time  four  other  banks  in  the 
State,  the  Union  of  New  London,  the  New  Haven, 
the  Middletown,  and  the  Norwich.  The  stockholders 
of  the  New  Haven  and  Middletown  banks  joined 
the  Hartford  bank  in  the  above  proposition.  A  few 
weeks  later  at  the  May  session  the  General  Assem- 
bly passed  an  act  authorizing  and  directing  the 
treasurer  of  the  State  to  subscribe  to  the  shares  of 
the  three  banks,  according  to  the  terms  submitted 
in  their  proposal,  and  to  embrace  also  the  banks  of 
New  London  and  Norwich,  provided  the  stock- 
holders of  the  latter  by  vote  declare  their  assent  to 
the  same  conditions  within  one  month  after  the 
rising  of  the  assembly.  The  law  enacts  that  the 
State  shall  be  entitled  to  all  profits  and  dividends 
to  accrue  from  the  shares  in  the  same  manner  as 
other  stockholders,  and  that  it  shall  have  the  right, 
on  giving  six  months'  previous  notice,  to  withdraw 


THE    HARTFORD    BANK  g- 

the  whole  or  any  part  of  the  investment.  The 
shares   of  the   State   were   not  transferable. 

The  law  further  provides  that  after  any  moneys 
are  so  paid  to  any  of  said  banks,  the  comptroller 
shall  be  furnished,  as  often  as  he  may  require,  not 
exceeding  once  a  month,  with  a  statement  of  the 
capital  stock  of  such  bank,  and  of  the  debts  due  to 
the  same,  of  the  moneys  deposited  therein,  of  the 
notes  in  circulation,  and  of  the  cash  on  hand ;  and 
shall  have  a  right  to  inspect  such  general  accounts 
in   the   books  as  relate   to  the   statement  rendered. 

Here  appears  the  first  attempt  in  Connecticut 
at  the  supervision  of  our  banks  by  the  State  au- 
thorities, and  the  initial  step  was  taken  not  for  the 
protection  of  depositors  or  bill-holders,  but  the  in- 
vestments of  the   State. 

It  is  also  enacted  that  in  case  the  paid  sub- 
scriptions to  any  one  bank  shall  exceed  five  thou- 
sand dollars,  the  General  Assembly  may  appoint,  or 
provide  for  the  appointment  of,  a  director,  to  have 
the  same  powers  as  the  other  directors.  The  law 
reserves  the  right  to  make  further  investments  on 
the  same  terms  with  other  moneys  than  those  ac- 
cruing to  the  State  from  the  redemption  of  federal 
stocks. 

May  24,  1803,  the  stockholders  voted  to  admit 
the  State  as  a  stockholder,  and  to  allow  it  to  in- 
vest all  or  any  part  of  the  moneys  accruing  or  to 
accrue  from  the  payment  of  its  holdings  of  federal 
funds,  and  that  it  be  entitled  to  all  profits  and  divi- 


84 


HISTORY    OF 


dends  on  the  shares  subscribed  and  paid  for  in 
the  same  manner  as  other  stockholders.  The  com- 
mittee appointed  April  26th  were  directed  to  carry 
the  resolution  into  effect.  In  the  course  of  the 
next  six  years  the  State  made  the  following  sub- 
scriptions to   the   stock   of  the   Hartford   Bank : 


No.  of  Shares. 

Par  Value. 

1803,  Dec.  10, 

60 

$24,000 

1805,  Dec.  13, 

28 

11,200 

1806,  June  14, 

6 

2,400 

1807,  Dec.  12, 

35 

14,000 

1809,  Dec.  13, 

32 

12,800 

161  $64,400 

March  7,  1805,  the  stockholders  resolved  to  in- 
crease the  capital  by  $118,400,  to  open  a  subscrip- 
tion for  the  purpose  on  the  first  of  May,  and  to 
allow  any  one  purchasing  and  .  paying  for  the  new 
shares  before  June  13th  to  receive  the  same  at 
$450  each  —  an  advance  of  i2]4  per  cent,  on  par. 
Provision  was  made  for  an  adjustment  of  rights  in 
case   of  over-subscription. 

When  the  term  expired,  only  $34,400  had  been 
taken.  At  the  annual  meeting,  June  13th,  authority 
was  given  the  directors  to  keep  the  books  open 
till  the  first  day  of  October,  and  they  were  em- 
powered to  modify  the  conditions  with  the  proviso 
that  if  future  subscriptions  were  admitted  at  an 
advance  of  less  than  12^  per  cent.,  so  much  should 
be  returned  on  the  shares  taken  between  April  ist 
and  June    13th,  as  would  reduce   the    premium   paid 


THE    HARTFORD    BANK  gc 

by  all  to  an  equality.  To  broaden  the  movement, 
parties  so  desiring  were  permitted  to  take  half  and 
quarter  shares.  The  premium,  now  lowered  by  the 
directors  to  five  per  cent.,  did  not  go  into  a  surplus 
but  was  distributed  as  a  bonus  among  the  holders 
just   prior   to   April   ist.     . 

Tempted  by  more  favorable  terms,  the  subscrip- 
tions between  the  annual  meeting  and  the  end  of 
the  year  reached  $151,200.  Still  the  ambition  of 
the  board  was  not  satisfied.  January  15,  1806,  they 
secured  an  extension  of  authority  till  the  thir- 
teenth of  the  following  June,  and  at  the  expira- 
tion of  the  period  further  additions,  aggregating 
$128,000,  brought   the  total   capital   up   to   $545,200. 

May  9,  1806,  led  astray  by  the  delusive  grand- 
eur of  mere  size,  the  shareholders  took  a  step 
which  opened  the  door  to  injustice,  and  caused 
much  trouble  in  after  years,  when,  under  more 
skillful  leadership,  the  bank  attained  to  enduring 
strength  through  an  ample  surplus,  for  they  voted 
to  receive  subscriptions  at  any  time  within  five 
years  for  any  number  of  shares  from  any  religious 
societies  or  school  corporations  in  Connecticut,  on 
terms  similar  to  those  arranged  with  the  State. 
John  Caldwell,  Nathaniel  Terry,  and  George  Good- 
win were  appointed  a  committee  to  apply  to  the 
General  Assembly,  then  in  session,  for  authority  to 
carry   the   resolution   into   effect. 

An  act  inspired,  and  presumably  prepared  in 
every    detail    by    representatives    of    the    institution, 


35  HISTORY    OF 

was  passed  in  May,  1807.  It  authorized  an  increase 
of  the  capital  stock  to  one  million  of  dollars.  On 
the  first  day  of  the  following  September,  and  on 
the  first  day  of  September  in  each  successive  year 
thereafter,  till  the  amount  of  five  hundred  thousand 
dollars  were  added  to  the  existing  capital,  the  direct- 
ors were  required  to  open  subscriptions  for  shares 
for  a  sum  not  exceeding  fifty  thousand  dollars,  to 
keep  the  same  open  at  least  ninety  days  after  due 
advertisement,  and  to  admit  any  citizen  of  the  State 
upon  paying  four  hundred  dollars  for  each  share, 
with  an  advance  thereon  of  four  per  cent.,  the  ad- 
vance to  be  divided  among  the  stockholders  at  the 
time   of   opening   the   several   subscriptions. 

As  shown  by  the  disposition  of  the  premium, 
the  importance  of  accumulating  a  surplus  had  not 
then  dawned  upon  the  bank  or  the  public.  Divi- 
dends varied  with  current  earnings  and  losses, 
withdrawing  the  residuum  of  profit  and  leaving  no 
reserve   for  repairs   in   case   of   disaster. 

Section  six  required  the  bank  to  be  open  at  all 
times  to  subscriptions  of  shares  from  the  funds  of 
schools,  ecclesiastical  societies,  or  other  incorpora- 
tions for  charitable  purposes  in  the  State,  without 
any  advance  thereon,  and  with  the  right  on  the 
part  of  the  privileged  associations  to  withdraw  theii 
moneys  on  giving  six  months'  notice.  Whenever 
the  holdings  of  any  favored  society  reached  fifty 
thousand  dollars,  the  full  capital  of  a  million  having 
been  otherwise  filled,  it  was  entitled  at  the  annual 


THE     HARTFORD     BANK  gy 

meetings  to  the  choice  of  a  director.  These  shares 
were   not  transferable. 

In  June  the  stockholders  voted  to  approve  and 
accept  of  the  law,  which  thus  became  a  part  of 
their  charter. 

After  a  time  the  bank  perceived  that  hardships 
were  liable  to  be  imposed  upon  the  ordinary  share- 
owners  by  the  option  granted  to  the  State  and  to 
privileged  societies.  If  the  price  of  the  stock  fell, 
no  matter  how  low,  with  the  failure  of  dividends  in 
seasons  of  misfortune,  these  could  after  due  notice 
surrender  their  certificates  at  par.  If,  on  the  other 
hand,  profits  and  prices  rose  in  a  way  to  make 
the  investment  desirable,  they  could  also  purchase 
at  par,  thus  both  diminishing  a  premium  earned 
by  the  capital  and  efforts  of  others,  and  appropriat- 
ing benefits  to  which  they  had  made  no  contribu- 
tion. Accordingly,  in  June,  1809,  the  directors  were 
authorized  to  present  to  the  General  Assembly  at 
some  future  session  the  request  that  the  State  with- 
draw a  part  of  its  holdings,  or  at  least  make  no 
additions  to  the  amount,  and  so  alter  the  charter  as 
to  release  the  bank  from  the  obligation  to  receive 
subscriptions  from  charitable  societies,  and  from 
individuals. 

As  often  happens,  the  institution  learned  too 
late  that  it  is  much  easier  to  get  into  trouble  than 
to  get  out.  From  self-sought  shackles  it  found  no 
escape  till  it  entered  the  National  system  in  1865. 
Till  then   it  was  held  to  strict  compliance  with   the 


gg  HISTORY    OF 

requirements  of  the  law  of  1807.  Individuals  eagerly- 
absorbed  the  annual  increment  of  $50,000,  while 
charitable  and  religious  societies  were  equally  active. 
By  December,  1816,  the  capital  reached  $1,212,800, 
of  which  $1,000,000  was  transferable,  and  $212,800 
non-transferable. 

In  May,  1802,  the  General  Assembly  enacted  that 
from  the  first  day  of  the  following  September,  no 
bank  in  the  State  should  issue  any  bill  or  note  for 
a  less  sum  than  one  dollar,  and  prohibiting  the  cir- 
culation of  such  notes  issued  elsewhere.  Not  from 
books  but  from  experience  the  people  had  learned 
the  law  that  paper  drives  out  specie  to  the  lowest 
denomination   to   which   it   is   issued. 

One  of  the  rules  adopted  before  the  bank  began 
business  provided  that  the  term  of  discount  should 
not  exceed  forty-five  days.  A  few  weeks  later  the 
limit  was  extended  to  sixty,  and  in  September,  1805, 
to  sixty-one  days.  In  December,  1809,  an  enlarge- 
ment of  the  limit  to  ninety  days  was  improved  to 
enforce  another  lesson  in  punctuality,  for  borrowers 
were  notified  that  on  all  notes  and  bills  running  for 
this  period  a  payment  of  twenty  per  cent,  would  be 
expected  at  maturity,  and  that  no  renewal  note 
would  be  received  or  entered  on  the  books,  if 
written  for  a  greater  sum  than  four-fifths  of  the 
principal   falling   due. 

About  this  time  manifestations  of  the  monopo- 
listic spirit  became  more  visible.  In  1809,  the 
directors   voted    that   no    loan    on    any   note    or    bill 


THE    HARTFORD    BANK  gg 

should  be  made  to  any  person  thereafter  for  less 
than  one  hundred  dollars,  or  for  renewal  for  less 
than  sixty  dollars,  that  no  notes  or  bills  for  less 
than  sixty  dollars  should  be  received  for  collection, 
or  unless  lodged  at  least  three  days  before  falling 
due,  and  that  the  bank  would  not  be  accountable 
for  any  errors  or  loss  accruing  from  omission  to 
give  notice  to  drawers  or  endorsers.  Such  rules 
seemingly  belong  to  a  period  so  archaic  that  the 
business  men  of  to-day  comprehend  with  difficulty 
the  conditions  which  made  their  enforcement  pos- 
sible.    Complaisance   comes   from   competition. 

In  September,  1812,  the  board  voted  to  con- 
tribute one  hundred  and  fifty  dollars  to  the  city  to 
aid  in  procuring  a  fire  engine  and  "  otherwise  array- 
ing the  city   to  repel  fire." 

The  seeds  of  underwriting  were  planted  early 
in  Hartford  by  men  closely  identified  with  the 
bank.  Indeed,  both  lines  of  activity  sprang  from  a 
common  parentage.  From  greater  breadth  of  op- 
portunity the  younger  child  has  become  the  famous 
member  of  the  family.  Early  in  1794,  Sanford 
and  Wadsworth  opened  an  office  for  the  purpose 
of  insuring  houses,  furniture,  merchandise,  etc., 
against  fire.  Policy  No.  2,  issued  February  8,  1794, 
insures  the  houses  of  Wm.  Imlay  one  year  for  ;^8oo, 
at  the  rate  of  one-half  per  cent.  It  is  signed  by 
the  firm  "for  the  Hartford  Fire  Insurance  Com- 
pany." The  persons  forming  the  company  are  not 
disclosed.     The   phrase   may  have   been   used    as  an 


QQ  HISTORY    OF 

embellishment.  Jeremiah  Wadsworth,  John  Cald- 
well, Sanford  &  Wadsworth,  Elias  Shipman,  and 
John  Morgan,  July  27,  1795,  entered  into  a  co-part- 
nership "for  the  purpose  of  underwriting-  on  ves- 
sels, stock,  merchandise,  etc.,  by  the  firm  of  the 
Hartford  and  New  Haven  Insurance  Company." 
John  Caldwell  was  appointed  agent  for  Hartford, 
and  Elias  Shipman   for  New   Haven. 

Local  marine  insurance — begun  in  1799  —  crys- 
talized  around  Ezekiel  Williams,  Jr.,  and  was  carried 
on  not  by  an  organized  association,  but  by  combi- 
nations, variable  in  personnel,  the  members  of  which 
agreed  to  take  each  a  specified  amount  in  the  dif- 
ferent risks.  Mr.  Williams  formed  the  groups,  col- 
lected the  premiums,  kept  the  records,  investigated 
claims,  and  paid  losses.  The  assurers  agreed  ^  to 
bear  perils  of  the  — 

"Seas,  men  of  war,  fires,  enemies,  pirates,  rovers,  thieves, 
jettisons,  letters  of  mark  and  counter-mark,  surprisals,  tak- 
ings at  sea,  arrests,  restraints,  and  detainments  of  all  kings, 
princes,  or  people,  of  what  nation,  condition,  or  quality 
soever  ;  barratry  of  the  master  (unless  the  assured  be  the 
owner  of  the  vessel),  and  mariners,  and  all  other  losses, 
perils,  and  misfortunes,  that  have  or  shall  come  to  the 
hurt  detriment  or  damage  of  the  said  vessel  or  any  part 
thereof,   for  which   assurers  are  legally  accountable." 

From  the  West  Indies  to  towns  on  the  Connec- 
ticut River  or  to  New  London,  the  premium  ranged 
generally  from  five  to  eight  per  cent.,  according  to 
the  liberty  granted  of  touching  en  route  at  one  or 
more   ports   on   the   islands.      For   the   round   trip    it 


THE    HARTFORD    BANK  OI 

often  ran  up  to  fourteen  or  fifteen  per  cent.,  with 
an  abatement  of  three  or  four  per  cent,  in  case  of 
safe  return.  For  the  premium  it  was  the  custom  of 
the  assured  to  give  their  notes  payable  out  of  the 
profits,  or  at  the  close  of  the  venture.  No  liability- 
was  incurred  for  a  loss  under  five  per  cent.,  unless 
in   case   of   general   average. 

The  amounts  written  by  the  several  assurers  on 
a  single  vessel  and  cargo  ordinarily  ranged  from 
one  hundred  to  six  hundred  dollars,  and  the  num- 
ber joining  in  the  contracts  from  three  to  ten  or 
twelve,  according  to  the  magnitude  of  the  aggre- 
gate liability.  Certain  names  appear  on  scores,  if 
not  hundreds,  of  these  policies.  Among  them  are 
John  Caldwell,  Normand  Knox,  Ezekiel  Williams, 
Jr.,  Michael  and  Thomas  Bull,  John  Chenevard, 
Samuel  Lawrence,  Hudson  &  Goodwin,  Thomas  San- 
ford,  Spencer  Whiting,  John   Morgan,   and   others. 

During  the  Napoleonic  wars  our  carrying  trade, 
stimulated  by  enormous  profits  for  brief  intervals, 
passed  through  long  periods  of  harassment  and  rob- 
bery from  the  disregard  of  the  belligerents  for  neu- 
tral rights,  and  later  suffered  hardly  less  from  the 
retaliatory  measures  adopted  by  our  own  government. 
The  books  of  George  and  John  Pierce,  afterwards 
Pierce  &  Beach,  from  September,  1799,  to  Novem- 
ber, 18 1 2,  lay  open  the  character  of  the  foreign 
traffic  of  the  Connecticut  valley,  and  the  difficulties 
which  then  beset  it.  Exports  to  the  West  Indies 
embraced  horses,   cattle,   hay,   lumber,   hoops,   staves, 


g2  HISTORY    OF 

flour,  corn,  corn  meal,  potatoes,  oats,  beans,  onions, 
tobacco,  cheese,  lard,  rice,  beef,  pork,  butter,  crack- 
ers, etc.  With  the  growth  of  urban  population  the 
domestic  consumption  long  since  overtook  the  domes- 
tic production  of  these  articles,  and  omitting  leaf 
tobacco,  the  soil  of  the  State  now  supplies  but  a 
small   fraction   of  the   subsistence   of  her  people. 

Imports  consisted  mostly  of  rum,  molasses,  sugar, 
and  salt. 

To  the  masters,  selected  for  sound  judgment 
and  versatile  gifts,  wide  discretion  was  allowed. 
Live  stock  was  usually  consigned  to  some  dealer 
on  the  islands,  and  the  in-board  cargo  to  the  cap- 
tain. After  the  first  landing  he  was  authorized  to 
proceed  to  other  ports  at  his  discretion,  according 
to  the  state  of  the  market  and  existing  political 
conditions  —  then  a  highly  variable  quantity  in  cal- 
culations  reaching   a   few   weeks   ahead. 

With  the  old  books  spread  out  before  one,  it 
is  hard  to  resist  the  temptation  to  give  copious 
extracts  from  the  instructions  of  the  owners  to  the 
masters.     A   few  must  suffice. 

April,  1804,  George  Pierce  thus  instructs  Capt. 
Levi  Goodrich,  of  the  schooner  Lydia,  bound  for 
Barbadoes : 

"You  will  be  particularly  careful  not  to  do  anything 
that  shall  get  you  into  difficulty  by  going  into  a  blockaded 
port,  taking  on  board  contraband  goods,  etc.  Having  full 
confidence  in  your  abilities  and  integrity  I  shall  leave  the 
business  of   the    voyage  to  be  conducted  as  you  think  will 


THE    HARTFORD    BANK  O^ 

be  most  for  the  interest  of  the  concerned.  You  will  not 
fail  to  write  every  opportunity,  mentioning  your  sales. 
Wishing  you  a  pleasant  voyage  and  short  passage,"  etc. 

John  Pierce,  supercargo  of  the  brig  Ontario 
bound  to  Surinam,  John  Deshon,  master,  in  June 
of  the   same   year  is   directed : 

"  ....  If  you  get  sugars  you  will  be  careful  to 
get  those  of  a  good  quality  and  in  good  order.  Be  particu- 
larly careful  that  your  molasses  is  in  good  order,  as  the 
voyage  depends  on  getting  good  goods  and  in  good  order. 
You  will  not  get  any  rum  at  Surinam  or  Demarara,  as 
the    quality  is  bad,   and  will  not  sell." 

During  the  continuance  of  the  embargo  from 
December,  1807,  till  March,  1809,  the  traffic  was  en- 
tirely suspended.  George  Pierce  died  in  1806,  and 
in  1809  John  Pierce  formed  a  partnership  under 
the  firm  name  of  Pierce  &  Beach,  with  George 
Beach,  who  had  now  reached  the  age  of  twenty- 
one,  and  who  while  still  a  mere  lad  had  filled 
well  the  position  of  confidential  clerk  of  the  house. 
Later,  Mr.  Beach  was  long  president  of  the  Phoenix 
Bank. 

During  those  troubled  years  a  well-defined  pol- 
icy is  enjoined  in  instructions  from  the  home  office. 
Captains  are  directed  to  have  their  papers  '*  fair 
and  correct,"  to  comply  with  the  laws,  onerous  as 
these  were,  to  avoid  blockaded  ports,  to  take  no 
risks  for  trifles,  to  shun  dangerous  complications,  to 
sell  for  coin  whenever  possible  on  account  of  the 
depreciation  of  paper,  and  to  buy  goods  of  the  best 


g.  HISTORY    OF 

quality.  Trained  amid  perils  and  compelled  to  meet 
rapidly  changing  conditions,  the  masters  became 
adroit  diplomats  as  well  as  skillful  sailors  and  trad- 
ers. The  record  covers  a  dozen  years,  the  last 
voyage  before  the  war  having  been  made  to  St. 
Bartholomews  by  the  brig  Samuel,  in  the  fall  of 
1812. 

Educated  by  long  practice  in  the  principles 
and  methods  of  underwriting,  the  city  in  18 10  cen- 
tralized its  scattered  efforts  by  organizing  the  Hart- 
ford Fire  Insurance  Company.  The  capital  was 
fixed  at  $150,000,  of  which  ten  per  cent,  was  to 
be  paid  within  sixty  days  from  the  passage  of  the 
act  granting  the  charter,  and  the  remainder  in 
notes  secured  by  mortgage  or  indorsement,  payable 
thirty  days  after  demand  by  the  president  and  di- 
rectors. 

The  company  was  chartered  at  the  May  session 
of  the  General  Assembly.  June  27th,  the  directors 
voted  that  the  money  received  upon  the  first  install- 
ment be  deposited  in  the  Hartford  Bank  until 
further  order.  November  14th,  they  voted  that 
Nathaniel  Terry  and  Nathaniel  Patten  be  a  com- 
mittee to  obtain  by  subscription  or  purchase,  at 
discretion,  a  number  of  shares  not  exceeding  forty 
in  the  stock  of  the  Hartford  Bank,  and  that  the 
pecuniary  funds  of  the  company  be  transferred  to 
them  for  the  ptirpose.  "  Also  that  they  obtain  a 
loan  from  said  bank  of  such  an  amount  as  they 
shall  judge   requisite  to  effect  said  purpose." 


THE    HARTFORD    BANK  qc 

As  the  par  of  the  bank  shares  was  then  $400, 
and  they  sold  at  an  advance  of  four  per  cent.,  the 
committee  would  have  required  $16,640,  had  they 
decided  to  go  to  the  limit  of  the  discretion  allowed 
to  them,  while  the  cash  installments  yielded  but 
$15,000  to  the  company.  November  27th,  $16,224 
were  placed  to  their  credit.  Conservative  counsels, 
however,  prevailed  and  they  contented  themselves 
with  the  purchase,  December  13th,  of  fourteen  shares 
at  $5,824,  returning  the  balance  of  $10,400  to  the 
treasury.  October  29,  18 17,  the  investment  reached 
one  hundred  shares,  bought  at  a  total  cost  of  $43,- 
684.25,  or  an   average   premium   of   .0921. 

The  insurance  company  now  hold  556  shares  of 
the  bank  stock,  par  100,  representing  a  total  cost  of 
$63,962.75,  and  at  the  close  of  the  year  1891  it  had 
received  in  dividends  from  this  source,  $323,514. 
Purchases  were  intermitted  from  May,  18 19,  to  May, 
1854.  During  the  entire  period  only  two  shares  have 
been  sold. 

Close  and  cordial  relations  between  the  two 
institutions  have  been  maintained  uninterruptedly. 
From  June  22,  18 10,  to  the  present  time  the  insur- 
ance company  has  kept  a  continuous  account  with 
the  bank,  and  it  was  an  exclusive  account,  till  1863, 
when  a  supplementary  account  was  opened  with 
Dabney,  Morgan   &   Company  of  New  York  City. 

The  embargo  of  1807,  and  the  subsequent  non- 
intercourse  acts  proved  singularly  oppressive  to  New 
England.     Exports  from  the  United  States  fell  from 


g5  HISTORY    OF 

$110,084,207,  in  1807,  to  $22,430,960,  in  1808.  On 
imports  the  duties  received  at  New  London  dropped 
from  $201,838,  in  1807,  to  $98,107,  in  1808;  $58,417, 
in  1809;  and  $22,343  in  1810.  Meanwhile  the  ship- 
ping owned  by  the  enterprising  merchants  of 
Hartford  lay  idle  and  rotting  in  the  river.  To 
commercial  suffering  was  added  the  humiliation  of 
the  slow  discovery  that  the  restrictive  measures 
enforced  by  the  government  were  more  injurious 
to  our  own  people  than  to  the  nations  at  which 
they  were  aimed.  In  October,  1807,  the  General 
Assembly  of  Connecticut  sought  to  ease  the  pain 
by  authorizing  the  banks  of  the  State  ''  to  issue  post- 
notes,  payable  to  order  and  at  a  time  subsequent  to 
the  issuing  of  the  same,  any  law  to  the  contrary 
notwithstan  ding. ' ' 

Little  attention  was  paid  to  the  highways  of  the 
State,  which  were  consequently  very  primitive,  till 
near  the  end  of  the  last  century,  when  a  mania  for 
building  turnpikes  broke  out  and  spread  till  the 
introduction  of  railways  suddenly  killed  the  industry, 
leaving  the  certificates  of  ownership  valueless  in 
the  hands  of  the  holders.  During  the  period  about 
one  hundred  and  twenty  charters  were  granted  by 
the  General  Assembly.  Among  the  earliest  was 
the  Hartford  and  New  Haven,  incorporated  in 
October,  1798.  Its  capital  was  divided  into  eight 
hundred  shares,  the  par  depending  on  the  cost  of 
construction.  Two  hundred  and  forty-four  shares 
were     placed     in     New     Haven,     of     which     James 


THE    HARTFORD    BANK  p- 

Hillhouse  took  one  hundred  and  fifty.  Hartford 
subscribed  for  five  hundred  and  twenty-one,  almost 
the  entire  amount  going  to  the  "  bank  crowd."  Jere- 
miah Wadsworth  took  no,  Oliver  Elsworth  150, 
Hudson  &  Goodwin  100,  Aaron  Olmstead  50,  John 
Morgan  25,  John  Caldwell  &  Co.  20,  Oliver  Mather 
20,  Ezekiel  Williams  10,  etc.  A  few  diminutive  lots 
were   held   in   the    intermediate   towns. 

The  first  meeting  of  the  company  was  held  at 
the  State  House  in  New  Haven,  April  10,  1799, 
when  Jeremiah  Wadsworth  was  chosen  president, 
James  Hillhouse  and  Aaron  Olmstead  directors, 
Oliver  Mather  clerk,  and  Simeon  Baldwin  treasurer. 
An  assessment  of  fifty  dollars  on  each  share  was 
laid,  payable  at  such  times  and  in  such  proportions 
as   the   president   and   directors   should   appoint. 

The  cost,  as  found  by  the  commissioners  in 
1803,  amounted  to  $77,180.93.  Since  this  was  long 
before  railway  financiering  had  taught  the  art  of 
sophisticating  accounts  pertaining  to  construction, 
it  may  be  assumed  that  the  estimate  was  as  near 
correct  as  honest  men  could  make  it.  The  pro- 
jectors anticipated  an  annual  income  of  twelve  per 
cent,  from  the  investment,  but  suffered  disappoint- 
ment. The  yearly  excess  of  tolls  over  cost  of 
collection  and  ordinary'  repairs  climbed  up  slowly 
to  i^,  2,  and  2}4  per  cent,  on  the  capital,  and  in 
1836,  as  if  to  mock  the  stockholders  with  the  delu- 
sive brightness  of  blessings  about  to  take  their 
flight,  the   apparent  profits  reached   3   per  cent. 


gg  HISTORY    OF 

October  26,  181 1,  the  bank  moved  into  its  pres- 
ent quarters  on  State  Street.  For  Grecian  symmetry 
and  obvious  adaptation  to  uses  required,  the  edifice, 
after  the  lapse  of  eighty  years,  in  the  presence  of 
imposing  architecture  of  recent  date,  still  remains 
one  of  the  most  attractive  in  the  city.  The  dome 
over  the  front  room  was  added  about  the  year  1820, 
and  as  a  work  of  art  both  in  form  and  decoration, 
bears  the   closest  study. 


THE    HARTFORD    BANK  gg 


CHAPTER  VI 

A  RIVAL  AND  A   REVOLUTION  — WAR  AND   PANIC 

DURING  twenty-two  years  the  bank  grew  in 
strength  and  influence  without  a  rival.  For 
solidity  and  enterprise  it  had  become  one 
of  the  best-known  institutions  of  the  country.  On 
converting  his  superfluities  into  money,  the  emigrant 
preferred  its  bills  to  gold.  From  the  motley  cur- 
rency of  the  period  these  were  carefully  laid  aside 
for  a  wet  day  or  a  pressing  call,  as  far  westward 
as  the  axe  of  the  frontiersman  had  pushed  the  out- 
posts of  civilization.  Around  home  nearly  every 
enterprise  undertaken  for  the  public  benefit  or  for 
private  gain  was  conceived  and  executed  by  parties 
drawn  together  by  the  centripetal  attraction  of  its 
affairs. 

But  in  a  prosperous  and  forceful  community  this 
state  of  things  could  not  continue.  Antipathies  and 
repulsions  of  various  source  and  intensity  perform 
functions  in  the  evolution  of  society  hardly  less 
noticeable  than  the  more  gracious  qualities  which 
cause  congenial  spirits  to  combine  for  common  ends. 
The  Athenians  tired  of  hearing  Aristides  called 
"the   Just." 

The  crisis  came  in  1814.     Ambitious  and  worthy 


IQQ  HISTORY    OF 

men,  desiring  seats  on  the  platform  raised  aloft  for 
the  financial  magnates  of  the  town,  and  finding  the 
chairs  pre-empted,  determined  to  build  a  platform 
of  their  own.  Politics  and  churches  were  drawn 
into  the  controversy.  In  its  progress,  ancient  affilia- 
tions were  broken  up,  and  heterogeneous  elements 
united  for  the  overthrow  of  the  old  order.  When 
the  question  of  chartering  a  new  bank  was  raised, 
the  political  situation  was  somnolent  from  one-sided- 
ness.  Any  radical  change  seemed  impossible.  How- 
ever, a  coalition  was  gradually  formed  which  shat- 
tered the  power  of  federalism  in  its  last  stronghold, 
and   divorced   church   from   state   in   Connecticut. 

Before  the  spring  session  of  the  assembly  in 
1 8 14,  printed  petitions  were  circulated  about  the 
State,  offering  in  return  for  a  bank  charter  with  a 
capital  of  $1,500,000,  "in  conformity  to  precedents 
in  other  States,  to  pay  into  the  treasury  of  this 
State,  for  the  benefit  of  the  State,  the  sum  of 
$60,000  to  be  collected  by  a  tax  or  premium  of 
four  per  centum,"  etc.  Although  many  signatures 
were  obtained  the  application  took  another  form, 
evidently  from  recognition  of  the  need  of  enlisting 
sectarian  and  local  support.  The  petition  presented 
was  signed  by  three  citizens  only.  In  this  it  was 
suggested  that  the  bonus  be  appropriated  to  the 
uses  of  Yale  College,  of  the  medical  institution  in 
New  Haven,  and  of  the  Bishop's  fund.  The  right 
to  establish  a  branch  at  Litchfield  was  also  asked 
for.     Litchfield    county    had    valuable    votes    but    no 


THE    HARTFORD    BANK  jqj 

bank.  Yale  College  was  a  pet  of  the  Congregation- 
alists.  In  the  proposed  contribution  to  the  Bishop's 
fund,  a  toothsome  bait  was  thrown  to  the  Episco- 
palians, a  denomination  singled  out  for  special  favor, 
not  only  on  account  of  its  wealth  and  influence,  but 
from  personal  bias  on  the  part  of  leaders  in  the 
movement.  The  Hartford  Bank  prepared  to  resist 
the  scheme.  At  a  meeting  of  the  stockholders  on 
the    5th   of   May,  it  was 

"  Voted,  that  Nathaniel  Terry,  John  Caldwell,  Andrew 
Kingsbury,  George  Goodwin  and  John  Morgan  be  and  hereby 
are  appointed  a  committee  to  apply  to  the  General  Assembly 
at  their  session  in  May  instant,  either  to  increase  the  Capital 
of  this  Bank  on  such  terms  and  to  such  an  extent  as  they 
may  think  proper ;  or  to  discharge  the  Bank  from  the 
obligation  they  are  under  to  receive  any  further  subscription 
to  its  Capital  according  to  the  law  passed  in  May,  1807,  if 
they  should  deem  the  same  to  be  expedient,  and  generally 
to  represent  this  Bank,  and  to  act  in  its  behalf  in  all  matters 
affecting  its  interests  which  may  come  before  said  assembly." 

In  pursuance  of  the  policy  adopted  by  the  stock- 
holders the  directors  presented  a  counter  memorial 
offering  to  add  one  million  of  dollars  to  the  capital 
of  the  bank  and  pay  the  State  a  bonus  of  five  per 
cent,  on  the  same,  if  in  the  judgment  of  the  Gen- 
eral  Assembly   more   banking  capital  was  needed. 

The  inevitable  correspondent,  in  the  Courant 
of  May  17th,  sounds  the  customary  note  of  warning. 
After  explaining  the  effect  of  a  redundancy  of  cur- 
rency in   depreciating   its  value,  "Probus"  proceeds: 


JQ2  HISTORY    OF 

"  But  the  continual  multiplication  of  banks  and  manu- 
facturing institutions  with  the  privilege  of  issuing  bills  of 
credit,  is  a  subject  of  just  alarm  to  the  community.  The 
power  of  creating  these  monied  institutions  is  exercised  by 
the  State  legislatures,  which  appear  to  be  governed  by  local 
views,  without  any  general  regard  to  the  state  of  trade. 
Assailed,  at  every  session,  by  applications  from  companies 
of  men,  who  want  to  be  bankers,  they  seem  to  attend 
more  to  the  gratification  of  individuals,  than  to  the  effects 
of  a  deluge  of  paper  upon  the  commerce  of  the  country. 
The  creation  of  forty-one  banking  institutions  in  Pennsyl- 
vania at  a  single  stroke  is  the  most  bold  and  inconsid- 
erate step  perhaps  ever  taken  on  this  subject — and  shows 
manifestly  how  little  competent  popular  assemblies  are  to 
manage  the  concerns  of  commerce.  In  other  States  the 
same  indiscretion  is  manifested,  though  in  a  less  degree  — 
and  where  the  evil  is  to  stop,  no  man  can  predict.  It  is 
an  undoubted  fact,  that  the  quantity  of  medium  in  our 
country,  now  circulating,  is  far  greater  than  the  trade 
of  the  country  requires,  or  will  long  bear,  without  a  seri- 
ous catastrophe.  Nor  is  the  practice  of  purchasing  charters, 
by  liberal  donation  to  the  State  treasuries,  to  be  viewed 
without  extreme  anxiety.  The  corrupting  influence  of  such 
a  practice  cannot  but  be  obvious;  and  once  introduced,  that 
influence  will  swell  like  a  torrent,  which  no  public  or  pri- 
vate virtue  will  be  able  to  resist.  Let  those  who  question 
this  position  acquaint  themselves  with  the  history  of  the 
legislature  of  New  York  for  a  few  years  past.  If  our  State 
legislatures  have  not  wisdom  to  foresee  the  effects  of  the 
rage  for  multiplying  monied  corporations,  and  firmness 
enough  to  set  limits  to  it,  the  trade  of  this  country  must, 
at  no  great  distance  of  time,  experience  serious  embarrass- 
ments that  will  eventuate  in  great  public  and  private 
losses,  and   perhaps   in  a  more  general  calamity." 


THE    HARTFORD    BANK  jq^ 

An  act  incorporating  the  new  institution  passed 
the  House  but  failed  in  the  Council.  Before  the 
committee  of  conference  reported,  a  modified  act 
granting  a  charter  to  the  Phoenix  Bank  passed 
both  branches.  Its  capital  was  fixed  at  one  million 
of  dollars,  privileged  societies  being  allowed  to  take 
at   par  additional   non-transferable   shares. 

At  the  same  session,  the  Assembly  resolved 
that  — 

"  Out  of  the  first  monies  which  shall  be  paid  into  the 
treasury  of  this  State,  in  pursuance  of  the  act  incorporat- 
ing the  Phoenix  Bank,  the  treasurer  shall  .  .  .  pay  the 
sum  of  $20,000  to  D.  Daggett,  Wm.  Leffingwell,  and  Charles 
Denison  .  .  .  trustees  .  .  .  for  the  use  and  benefit  of 
the  Medical  Institution  of  Yale  College." 

The  council  also  voted  to  appropriate  $10,000, 
accruing  from  the  bonus  to  the  Bishop's  fund,  but 
the  resolution  was  lost  in  the  lower  house.  In  Oc- 
tober, 181 5,  both  houses  concurred  in  rejecting  the 
claim  of  the  Episcopalians.  Thus  the  manner  of 
granting  the  charter  exasperated  a  church  formida- 
ble from  numbers,  wealth,  culture,  and  compactness 
of  organization.  They  contended  that  in  following 
the  petition  only  so  far  as  it  favored  the  "  stand- 
ing order,"  the  General  Assembly  had  violated  an 
implied  pledge.  A  further  grievance  arose  from 
the  persistent  refusal  of  the  dominant  church,  as 
represented  in  the  Legislature,  to  grant  them  a 
college-charter.  Ugly  feelings  provoked  ugly  words. 
The    pens    of    the    disputants   were    dipped    in    gall. 


jQ.  HISTORY    OF 

Sectarian  bitterness  overcame  political  cohesion.  In 
1816,  the  Episcopalians  reinforced  the  Methodists, 
Baptists,  and  other  opponents  of  Congregationalism, 
and  all  made  common  cause  with  the  Jeffersonian 
democracy  for  the  overthrow  of  a  system  which, 
as  they  alleged,  ignored  their  rights.  In  1817,  the 
Hartford  Times  was  established  to  voice  the  de- 
mands of  "  toleration,"  the  shibboleth  of  the  new 
party.  On  the  conservative  side  were  arrayed  the 
federalists,  the  Congregational  church,  the  Courant, 
and  the  Hartford  Bank.  Through  four  years,  in 
face  of  continuous  losses,  they  fought  with  dogged 
resolution  to  save  a  system  that  had  ceased  to  suit 
the   temper   of  the   times. 

The  coalition  nominated  Oliver  Wolcott  for 
governor,  and  Jonathan  Ingersoll  of  New  Haven 
for  lieutenant-governor.  Wolcott  succeeded  Alexan- 
der Hamilton  as  secretary  of  the  treasury,  and  held 
the  office  till  near  the  end  of  Adams's  administra- 
tion. Ingersoll,  a  trustee  of  the  Bishop's  fund,  was 
a  federalist.  At  the  spring  election  Wolcott  was 
defeated,  but  Ingersoll  by  the  aid  of  federal  votes 
was  successful. 

Alarmed  at  the  strength  of  the  opposition,  the 
federalists  made  concessions  which  merely  irritated 
the  sores.  In  October,  1816,  the  General  Assembly 
distributed  about  five-sixths  of  the  balances  due 
from  the  United  States  to  the  State,  on  account 
of  expenditures  for  defense  in  the  late  war,  to 
trustees   for  the  use   of    the    Congregational,   Episco- 


THE     HARTFORD     BANK  ^qc 

pal,  Baptist,  and  Methodist  denominations,  and  to 
Yale  College,  giving  to  the  Congregationalists  the 
lion's  share,  a  somewhat  ungracious  way,  in  the 
light  of  previous  favors  to  that  body,  of  tendering 
an   olive   branch   to  the   disaffected. 

In  1 817,  both  Wolcott  and  IngersoU  were 
elected  with  a  favorable  majority  in  the  lower 
house.  In  the  spring  of  181 8,  the  victory  of  the 
"  tolerationists "  was  made  complete  by  carrying  two- 
thirds  of  the  council.  Only  four  years  earlier,  be- 
fore the  apple  of  discord  had  been  thrown,  John 
Cotton  Smith,  the  federalist  candidate,  received 
9,415  votes  for  governor,  and  Elijah  Boardman,  his 
democratic  competitor,  2,619.  Never  till  then  had 
such  a  cyclone  swept  over  the  land  of  steady 
habits.  Before  the  end  of  the  year  the  constitu- 
tion under  which  the  people  of  the  State  have 
since   lived  was  formed  and   adopted. 

It  is  doubtless  true  that  this  controversy,  in 
which  the  Hartford  Bank  bore  a  leading  and  hap- 
pily a  losing  part,  only  hastened  an  inevitable  rev- 
olution. Be  this  as  it  may,  the  event  marks  an 
epoch  in  one  of  the  most  instructive  and  fruitful 
experiments   in   self-government. 

The  constitution  adopted  in  1638-9  by  Hartford, 
Windsor,  and  Wethersfield,  the  first  written  constitu- 
tion known  to  history,  lodges  the  supreme  power  of 
the  commonwealth  in  the  general  court  as  the  repre- 
sentative of  the  people  from  whom  it  derived  its 
existence.    The   court   was   impowered   to  make   and 


io6 


HISTORY    OF 


repeal  laws,  to  levy  taxes,  to  admit  freemen,  to  dis- 
pose of  lands,  to  punish  crimes  and  misdemeanors, 
and  to  deal  in  any  other  matter  that  concerned 
the  good  of  the  commonwealth,  except  the  election 
of  magistrates,  which  was  left  to  the  whole  body 
of  freemen.  No  sovereignty  was  recognized  outside 
of  the  parties  to  the  compact.  Here  in  the  wilder- 
ness a  handful  of  men,  having  put  an  ocean  be- 
tween themselves  and  the  oppressions  of  tyranny, 
were  the  first  quietly  but  firmly  to  announce  the 
doctrine  that  the  people  have  the  right  to  order 
their  own  affairs  with  a  view  solely  to  their  own 
good. 

The  charter  of  1662,  from  Charles  II,  made  no 
change  in  the  situation,  but  was  successfully  as- 
sumed to  confirm  to  the  colony  the  privileges  pre- 
viously enjoyed.  It  was  an  ingenious  instrument, 
drawn  up  with  great  care  in  Hartford,  and  signed 
by  the  youthful  monarch  in  a  rare  paroxysm  of 
good  sense.  After  conferring  upon  the  colony  the 
ordinary  attributes  of  a  body  politic  and  corporate, 
it  impowers  the  inhabitants  to  choose  yearly  a 
governor,  deputy-governor,  and  twelve  assistants,  to 
admit  freemen,  to  hold  general  assemblies,  to  es- 
tablish courts,  ordain  laws,  impose  fines,  and  pun- 
ish offenders.  The  "  governor  and  company "  are 
authorized  for  the  defense  and  safety  of  the  colony 
to  "  put  in  warlike  posture  the  inhabitants,"  and  to 
commission  suitable  persons  to  command  such 
forces.     Other  loving  subjects   of  the   crown   are   not 


THE    HARTFORD     BANK  IO7 

to  be  hindered  from  fishing  on  the  coast,  or  from 
erecting  on  waste  land  wharves  and  stages  neces- 
sary for  the  drying  and  salting  of  their  fish.  To 
this  skeleton,  purposely  left  bare,  the  people  sup- 
plied  flesh,  blood,  and   a  living  spirit. 

Ardently  religious  and  finding  in  dreams  of 
heaven  the  strength  to  bear  with  fortitude  the  ills 
of  earth,  the  freemen  of  Connecticut  invoked  the 
aid  of  the  law  for  the  upbuilding  of  the  church  of 
their  love.  To  perpetuate  usages  at  length  vaguely 
threatened  by  growing  diversities  of  population  and 
opinion,  in  1697  the  court  enacted  that  the  several 
towns  and  plantations  in  the  colony  should  pay  to 
their  respective  ministers  of  the  gospel  the  sums  or 
salaries  agreed  upon  between  them,  by  a  tax 
assessed  on  the  inhabitants  of  each  according  to 
their  estates.  Two  years  later  a  pastoral  settlement 
assented  to  by  the  major  part  of  the  householders 
of  a  society  was  made  binding  on  all.  That  the 
wayfarer  might  not  miss  the  road  from  lack  of 
guide-board,  the  assembly,  in  October,  1708,  ordained 
that  all  churches  within  its  jurisdiction,  uniting  in 
the  doctrine,  worship,  and  discipline  approved  by 
the  synod  which  met  at  Saybrook  the  previous 
September,  should  "  be  owned  and  acknowledged, 
established  by  law."  An  act  passed  in  May  of  the 
same  year  permitted  sober  dissenters  to  worship 
separately,  but  without  relief  from  the  tax  imposed 
for  the   use   of  the   Congregational  ministry. 

From   1727,  members  of  the  Church  of   England 


io8 


HISTORY    OF 


were  permitted  to  pay  the  taxes  collected  from  them 
for  the  support  of  the  gospel,  to  the  settled  ministers 
of  their  own  denomination.  Two  years  later  a 
similar  relaxation  was  made  in  favor  of  Quakers 
and   Baptists. 

No  further  breach  in  the  walls  was  effected  for 
two  generations.  At  length,  to  still  forever  the 
murmurs  of  discontent,  a  concession,  supposed  to 
be  final,  was  granted.  By  the  law  of  October,  1791, 
any  dissenter  from  the  worship  of  the  standing 
order,  electing  to  join  any  other  denomination  of 
Christians,  by  lodging  a  certificate  thereof  with  the 
clerk  of  the  society,  was  thereupon  exempted  from 
the  payment  of  further  taxes  for  the  support  of  the 
Congregational  ministry,  so  long  as  he  continued 
to  attend  ordinarily  the  church  of  his  choice.  The 
ancient  power  of  levying  taxes  on  members  for  the 
salaries  of  ministers  and  for  the  erection  and  repair 
of  meeting-houses  was  extended  to  all  Christian 
sects. 

Such,  in  part,  was  the  situation  in  Connecticut 
when  the  prosperity  of  the  Hartford  Bank  brought 
forward  a  competitor,  and  the  quarrel  arose  over  the 
disposition  of  the  bonus  paid  for  the  new  charter. 
In  the  fight  for  the  retention  of  supremacy  Con- 
gregationalism and  the  political  oligarchy  closely 
allied  to  it  were  pitted  against  the  field.  With 
the  expansion  of  secular  interests  the  people  had 
been  growing  less  theological,  and  hence  less  sym- 
pathetic with  a  theocratic  trend  of  civil  government. 


THE    HARTFORD    BANK  jqq 

Many  were  indifferent.  Scientific  generalizations 
were  producing  mental  conditions  incongruous  with 
certain  phases  of  old  beliefs.  In  view  of  the  insur- 
mountable limits  of  human  knowledge,  reverent 
minds,  even  in  the  strongholds  of  puritanism, 
began  to  doubt  whether  creeds  could  be  anchored 
upon  the  billows  of  an  unfathomable  sea,  and 
whether  any  ecclesiastical  mint  was  divinely  com- 
missioned to  coin  the  infinite  into  legal  tender  and 
force  its  acceptance  in  final  settlement  of  questions 
that  besiege   forever  the  human  soul. 

Reasons  connected  with  the  administration  of 
justice  and  the  election  of  assistants  also  satisfied 
many  that  the  State  had  outlived  the  system  slowly 
built  up  on  the  generalities  of  the  charter  of  1662. 
The  legislative  and  judicial  functions  of  govern- 
ment were  not  definitely  separated.  At  will  the 
General  Assembly  reviewed  and  overturned  the 
decisions  of  the  judiciary,  in  effect  making  a  mis- 
cellaneous body,  composed  in  one  branch  mostly  of 
farmers,  the  Supreme  Court  of  the  State.  Concrete 
cases  arose  which  convinced  thoughtful  minds  of 
the  unwisdom  and  danger  of  this  undefined  distri- 
bution  of  authority. 

Members  of  the  upper  house  were  elected 
annually  from  the  State  at  large  in  a  way  to 
make  the  body  virtually  self-perpetuating.  Vacan- 
cies seldom  occurred  except  through  death,  senility, 
or  promotion  to  higher  office.  Otherwise  the  same 
men    met    year    after    year,    a    miniature    house    of 


no 


HISTORY    OF 


lords,  elective  in  form  rather  than  in  fact.  By  an 
act  passed  in  1801,  freemen,  when  voting  for  assist- 
ants or  representatives  in  Congress,  were  required 
to  rise,  or,  if  the  accommodations  were  insufficient 
to  admit  of  seating,  to  hold  up  the  hand.  The  law, 
which  grew  more  odious  as  the  value  of  a  secret 
ballot  became  better  understood,  was  repealed  in 
October,  1816,  the  first  fruit  of  a  still  incomplete 
success. 

The  constitution  of  181 8  presents  a  declaration 
of  rights  in  twenty-one  sections,  mostly  explicit 
statements  of  rights  previously  recognized  as  parts 
of  the  written  or  unwritten  law.  A  few,  however, 
involve  radical  changes.  The  enjoyment  of  religious 
worship  in  a  decorous  manner  is  guaranteed  to  all 
persons  without  discrimination,  and  a  prohibition 
is  put  upon  giving  preference  by  law  to  any 
Christian  sect.  The  powers  of  government  are  dis- 
tributed between  the  legislative,  executive,  and 
judicial  departments,  each  independent,  and  each 
having  a  separate  magistracy.  Senatorial  districts 
were  not  formed  till  after  the  adoption  of  the 
amendment  of  1828.  By  article  seventh,  while  the 
worship  of  the  Supreme  Being  is  declared  to  be 
the  duty  of  all  men,  it  is  ordained  that  no  person 
shall  by  law  be  compelled  to  join  or  support  any 
church  or  religious  association,  and  equal  privileges 
are  guaranteed  to  all   Christian   denominations. 

Coalescing  with  other  influences  the  constitution 
gave     a    decided    impetus    to    the    development    of 


THE    HARTFORD     BANK  JU 

mechanical  talent  and  mechanical  industries,  which 
came  most  opportunely,  not  only  to  arrest  the  de- 
population of  the  State  caused  by  the  decadence  of 
agriculture,  but  also  to  bring  to  it  new  and  prolific 
sources   of  wealth. 

Having  held  the  cashiership  for  fifteen  years, 
Normand  Knox  resigned  the  position  July  22,  18 14, 
to  accept  the  presidency  of  the  Phoenix  Bank.  In 
1 80 1  his  salary  was  raised  from  $800  to  $1,000,  and 
there  it  remained  during  the  rest  of  his  term.  In 
1807  fifty,  and  during  the  three  subsequent  years 
one  hundred  dollars  additional,  were  voted  him  for 
extra  services.  He  died  in  1821.  Horace  Burr  was 
appointed   cashier  to  succeed   Mr.   Knox. 

A  brief  r^sum^  of  the  general  situation  will  pre- 
pare the  reader  to  appreciate  more  fully  the  attitude 
of  the  Hartford  and  other  Connecticut  banks  during 
and  after  the  war  of   181 2. 

Strenuous  efforts  to  secure  a  renewal  of  the 
charter  of  the  first  United  States  Bank  failed  in 
Congress  by  a  bare  minority.  It  had  furnished  the 
country  a  sound  currency  redeemable  at  all  times 
in  coin.  It  had  rendered  invaluable  aid  in  estab- 
lishing the  credit  of  the  young  republic,  and  had 
paid  satisfactory  dividends.  Its  continuance  was 
opposed  less  on  grounds  of  public  policy  than  from 
desire  on  the  part  of  many  influential  persons,  out- 
side of  the  circle  of  stockholders,  to  appropriate  the 
profits  of  the  business  through  local  banks  which 
they  proposed  to   organize. 


112  HISTORY    OF 

The  charter  expired  March  4,  181 1.  As  the 
institution  had  its  principal  office  in  Pennsylvania, 
the  mania  for  the  creation  of  new  concerns  raged 
with  exceptional  violence  in  that  State.  Wild  and 
radically  erroneous  ideas  prevailed.  Many  fancied 
that  in  some  way  cities  owed  their  prosperity  to 
banks,  and  that  an  extension  of  the  system  would 
confer  similar  benefits  upon  the  country.  Says 
Condy  Raguet,  in  a  report  made  to-  the  Pennsyl- 
vania  Legislature   in   January,   1820:  — 

"It  was  supposed  that  the  mere  establishment  of  banks 
would  of  itself  create  capital,  that  a  mere  promise  to  pay- 
money  was  money  itself,  and  that  a  nominal  rise  of  the 
price  of  land  and  commodities,  ever  attendant  upon  a 
plenty  of  money,  was  a  real  increase  of  substantial  wealth. 
The  theory  was  plausible  and  too  well  succeeded." 

During  the  session  of  1812-13  the  Pennsylvania 
Legislature,  by  a  majority  of  one  in  each  branch, 
voted  to  incorporate  twenty-five  banks;  but  the 
scheme  was  killed  by  a  veto  from  the  governor. 
At  the  next  session  a  bill  incorporating  forty-one, 
with  capitals  amounting  to  over  $17,000,000,  rushed 
through  over  a  second  executive  veto,  became  law 
March  21,  1814.  Of  the  number  authorized,  thirty- 
seven   went   into   actual   operation. 

The  bona  fide  capital  produced  was  very  small; 
for,  after  the  collection  of  the  first  installment,  sub- 
sequent payments  were  often  made  in  the  promis- 
sory notes  of  subscribers,  having  an  element  of 
permanence    sadly    lacking    in    other    parts    of    the 


THE    HARTFORD    BANK  jj^ 

make-up.  Ordinarily  excessive  issues  are  prevented 
by  the  inflow  of  bills  for  redemption.  Now,  how- 
ever, the  war  stopped  in  great  measure  the  ex- 
port of  specie,  making  it  easy  to  float  an  extraor- 
dinary volume  of  paper.  Government  made  heavy 
loans,  taking  the  proceeds  in  bank  notes.  Intoxi- 
cated by  the  speculative  fever  individuals  borrowed 
recklessly,  the  banks  of  the  Middle  and  Southern 
States  meanwhile  pouring  out  promises  to  pay,  ob- 
livious  that  a   day   of   reckoning  must   come. 

New  England  escaped  the  infatuation.  At  that 
time  the  party  built  up  by  Jefferson  had  few  ad- 
herents east  of  New  York.  Even  the  bait  of  pat- 
ronage, usually  so  effective  in  catching  recruits, 
made  no  sensible  break  in  the  ranks  of  her  lead- 
ers. Both  Napoleon  and  the  British  cabinet  in  the 
deadly  struggle  for  mastery  showed  equal  disregard 
for  the  neutral  rights  of  the  United  States,  but  the 
embargo  and  other  retaliatory  measures  of  our  gov- 
ernment, while  helping  rather  than  hurting  the  bel- 
ligerents, aroused  in  New  England  feelings  of  deep 
and  lasting  resentment  from  the  incurable  injuries 
they  inflicted  upon   her  commerce. 

When  at  length  war  was  declared,  the  step 
found  hardly  an  advocate  or  apologist  among  the 
federalists  of  the  East.  Amid  the  heats  of  parti- 
san rancor  they  refused  to  concede  to  the  admin- 
istration either  patriotism  or  ability.  The  surrender 
of  Hull,  the  imbecility  of  Dearborn  and  the  blun- 
ders of  Wilkeson,  seemed  to  justify  the   charge  that 


jj.  HISTORY    OF 

in  the  end  hostilities  were  precipitated  without 
forethought  or  preparation.  Among  our  presidents, 
Madison  stands  preeminent  for  the  unfitness  of  his 
appointments.  In  aggravation  of  the  mischief  he 
acted  on  the  theory  that  his  responsibility  ceased 
with  the  selection  of  subordinates,  who  must  there- 
after bear  alone  the  blame  for  miscarriages  in  the 
respective   spheres   assigned  to  them. 

Whether  the  federalists  were  right  or  wrong, 
anticipations  of  disaster  repressed  the  speculative 
fever  usually  produced  by  advancing  prices.  Con- 
servatism marked  the  operations  of  financiers  and 
traders.  The  banks  of  Connecticut  and  Massachu- 
setts issued  their  notes  sparingly,  keeping  far 
within  the  danger-line.  A  currency  proportioned 
to  the  needs  of  business  held  prices  at  a  moderate 
level  in  those  States,  while  redundancy  of  paper 
caused  high  prices  and  reckless  activity  wherever 
the  abuse  existed.  One  market  attracted  buyers 
and  the  other  sellers.  Accordingly  streams  of 
domestic  and  imported  commodities  flowed  con- 
stantly westward  and  southward  from  New  England. 
Coin  moved  in  the  opposite  direction  to  meet  the 
payments.  Local  settlements  in  New  York,  Phila- 
delphia, and  Baltimore  were  effected  by  paper, 
while  specie  was  sent  eastward  where  its  purchasing 
power  was  much  greater.  To  both  a  sound  and 
unsound  currency  applies  the  double  truth  of  the 
parable:  "to  him  that  hath  shall  be  given,  and  from 
him  that  hath  not  shall  be  taken  even  that  which 
he   hath." 


THE    HARTFORD    BANK  ue 

The  capture  of  Washington  in  August,  1814, 
afforded  to  the  inflated  banks  a  convenient  pretext 
for  suspension.  From  Baltimore  to  New  York  they 
tumbled  in  quick  succession,  but  in  the  East  they 
stood  unshaken  by  the   storm. 

At  once  the  bills  of  the  Hartford  and  other 
Connecticut  banks  disappeared  from  circulation, 
either  coming  in  for  redemption  or  going  into 
private  hoards.  At  first  the  issues  of  suspended 
institutions,  now  relieved  from  all  checks  upon 
prudence,  rushed  into  the  vacuum.  According  to 
origin  these  represented  various  degrees  of  depre- 
ciation, so  that  every  trade  and  settlement  involved 
more  or  less  difficult  computations,  the  loss  from 
errors  falling  as  a  rule  upon  the  poor  and  ignorant. 
The  situation  deprived  our  banks  of  the  profits  of 
circulation,  and  forced  upon  the  people  a  very 
unsatisfactory  currency.  Hence  at  a  special  session 
in  January,  181 5,  the  General  Assembly  passed  an 
act  impowering  each  incorporated  bank  in  the  State 
to  issue  bills  to  the  amount  of  one-half  the  actually 
paid  capital  thereof,  receivable  for  all  debts  due  the 
same,  and  payable  in  specie  on  demand  two  years 
after  the  close  of  the  war.  Presidents  and  cashiers 
were  required  to  make  semi-annual  sworn  statements 
to  the  General  Assembly  of  the  amounts  outstanding 
at  the  time  of  such  returns.  The  previous  October 
it  had  authorized  them  to  issue  promissory  notes  of 
less  denomination  than  one  dollar  for  the  payment 
of  money  only. 


jj5  history   of 

Our  banks   now  put  out  bills  under  two   forms, 

tbe   first   promising   to   pay   the    bearer   dollars 

in   notes    of    New   York    banks,    on    demand   at    the 

bank   in    New  York,   or   in    specie    two   years 

after  the  war;  and  the  second  promising  to  pay  the 

bearer  dollars   two   years  after   the   war.      Both 

were  receivable  for  all  debts  due  the  several  insti- 
tutions issuing  the  same.  Borrowing  a  hint  from 
Virgil — Facilis  decensus  Averni — the  public  named 
them  "  facilities."  Fractional  notes  ranging  from 
six  and  one-quarter  to  fifty  cents  were  also  freely 
injected  into  the  currency.  Individuals  and  corpora- 
tions, barbers  and  bar-tenders  as  well  as  manufac- 
turers and  capitalists,  the  solvent  and  the  insolvent, 
further  variegated  the  assortment  of  "  shinplasters " 
by  liberal  contributions,  some  professing  to  call  for 
money  and  others  for  services.  Meanwhile,  counter- 
feiters took  advantage  of  the  disorder  to  scatter 
abroad  large  quantities  of  spurious  stuff.  Treasury 
notes,  though  receivable  for  public  dues,  were  not 
a  legal  tender,  their  value  from  day  to  day  depend- 
ing on  the  changing  views  of  buyers  and  sellers. 

The  treaty  of  peace  was  signed  at  Ghent, 
December  24,  18 14,  the  news  reaching  New  York 
by  the  sloop-of-war  Favorite,  February  11,  181 5.  The 
people  of  Connecticut  were  so  thoroughly  apprecia- 
tive of  the  value  of  a  sound  currency  that  the 
subject  was  one  of  the  first  to  enlist  their  attention. 
At  the  May  session  of  181 5  the  power  granted  to 
the    banks    to    emit    post-notes    payable    two    years 


'       THE    HARTFORD    BANK  ^  1 7 

after  the  end  of  the  war,  was  made  to  cease  and, 
determine  from  the  first  day  of  January,  18 16.  The 
issue  by  any  unauthorized  person,  persons,  or  corpo- 
ration of  paper  intended  to  pass  in  lieu  of  money 
was  prohibited  under  heavy  penalties.  The  law 
for  the  punishment  of  counterfeiters,  contained  in 
the  revision  of  1784,  was  left  in  force,  except  that 
the  offender  was  in  no  case  to  be  whipped  on  the 
naked   body. 

As  the  banks  of  Connecticut  had  never  sus- 
pended, the  post-notes  being  a  mere  eddy  from  the 
general  current,  they  now  thought  the  time  at  hand 
when  the  banks  of  the  Middle  and  Southern  States 
should  prepare  for  speedy  resumption.  New  York 
or  Philadelphia  could  return  for  coin  every  stray 
bill  from  the  east,  and  laugh  to  scorn  any  attempt 
to  send  back  their  own  by  way  of  offset.  After 
various  consultations  it  was  decided  to  hold  a  con- 
vention at  Middletown,  July  7,  181 5,  to  consider 
"  the  expediency  of  taking  measures  to  persuade 
or  compel  the  New  York  banks  to  resume  specie 
payments  at  such  a  period  as  may  be  deemed 
proper."  John  Caldwell  and  David  Watkinson  were 
appointed  delegates  from  the  Hartford  Bank.  On 
the  8th  these  gentlemen  reported  to  the  directors 
the  action,  of  the  meeting,  which  was  unanimously 
approved.  John  Morgan  was  selected  to  meet  other 
representatives  from  the  State  in  the  city  of  New 
York,  July  19th,  to  present  the  views  adopted  at 
Middletown,  to  a  committee  of  that  city  and  receive 
its  reply  thereto. 


jjg  HISTORY    OF 

Wall  Street  manifested  little  anxiety  to  be  saved 
from  the  error  of  its  ways,  listening  irresponsively 
to  the  pleadings  of  the  missionaries  sent  forth  for 
its  conversion.  With  bills  at  a  discount  of  fifteen 
per  cent.,  the  banks  of  the  city  were  generally 
paying  large  dividends,  and  hence,  as  long  as  the 
community  remained  reasonably  quiet,  were  quite 
content  to  allow  matters  to  drift  on  without  agitat- 
ing for  a  change.  In  its  issue  of  September  27th 
the   Courant   in   a   few   lines   summarizes   the   case : 

"  It  would  be  a  great  accommodation  to  many  persons 
who  give  their  notes,  if  their  fellow  citizens  would  keep 
them  in  perpetual  circulation  as  money  without  ever  pre- 
senting them  for  payment  —  confiding  in  the  assurance  of 
the  promisors  that  they  have  property  enough  to  make  the 
notes  secure,  but  no  cash  —  they  have  a  great  estate,  but  no 
money  —  and  the  holders  of  notes  must  feel  safe  in  this  con- 
viction, without  ever  using  or  testing  it.  And  why  should 
not  these  note  issuers  be  thus  accommodated  as  well  as  the 
individuals   who   compose   a   southern   or   any  other    bank  ? " 

As  rates  of  depreciation  varied  with  distances 
from  points  of  issue,  an  army  of  money-brokers 
sprang  up  who  drew  handsome  profits  from  the 
exchange  of  dishonored  promises.  Self-interest  led 
the   class  to  favor  continuance   of  the   suspension. 

The  labor  of  signing  fractional  currency  proved 
so  burdensome  that  December  9,  181 5,  'the  board 
passed  a  vote  authorizing  any  one  of  the  directors 
to  sign  as  vice-president,  and  Mr.  Charles  Goodwin 
to  countersign  for  the  cashier.  On  the  14th  of  the 
following    June,    James    Burr,    Charles    Goodwin,    or 


THE    HARTFORD     BANK  I  ig 

either  of  the  clerks,  were  impowered  to  countersign 
for   the   cashier. 

At  the  October  session,  1816,  the  General  Assem- 
bly repealed  the  law  permitting  the  banks  to  issue 
bills  of  a  less  denomination  than  one  dollar,  and 
prepared  to  suppress  their  circulation  by  enacting 
that  each  person  passing  such  bill  from  and  after 
the  first  day  of  March,  181 7,  should  be  liable  to  a 
penalty  of  three   dollars. 

Step  by  step  the  Legislature  proceeded  to  build 
barriers  against  the  future  creation  of  irredeemable 
paper.  Meanwhile  our  stockholders  were  not  quite 
ready  to  forego  the  convenience  or  profit  of  circula- 
tion. Yielding  to  a  reactionary  impulse  they  voted 
at  the  annual  meeting  in  June,  1816,  to  authorize 
the  directors,  if  in  their  judgment  it  should  be 
deemed  expedient,  to  issue  bills  receivable  for  all 
debts  due  to  the  bank,  with  the  proviso  that  the 
total  amount  should  not  exceed  one-sixth  part  of 
the  capital.  The  next  day,  in  declaring  the  semi- 
annual dividend,  the  directors  made  it  payable  July 
ist,  either  in  the  notes  of  New  York  banks,  or  in 
its  own  notes  receivable   for   debts   due   to   it. 

In  181 7  the  par  of  the  shares  was  reduced  from 
four  hundred  to  one  hundred  dollars  each,  four  of 
the  new  being  exchanged  for  one  of  the  old,  and 
the  board  of  direction  was  increased  from  nine  to 
twelve. 

From  stocks  on  hand  at  the  close  of  the  war 
the  United   States  exported  before   the  first   of  Octo- 


J20  HISTORY    OF 

ber,  1 815,  cotton,  tobacco,  and  rice  to  the  value  of 
twenty-eight  and  a  half  millions  of  dollars,  and 
wheat  and  corn  to  the  value  of  over  eight  millions. 
New  England  produced  little  for  export.  During 
the  earlier  Napoleonic  wars  her  shipping  had  proved 
a  source  of  enormous  revenue,  notwithstanding 
vexatious  harassments.  But  the  embargo,  the 
restrictive  acts,  and  the  blockade  had  both  cut  off 
the  income  and  wasted  the  capital  invested  in  the 
business.  In  the  carrying  trade  she  thenceforth 
came  into  direct  competition  with  Great  Britain 
and  France,  and  profits  sunk  toward  zero.  Simul- 
taneously with  the  outflow  of  agricultural  produce, 
England,  to  relieve  her  congested  warehouses, 
inundated  our  markets  with  her  manufactures, 
which,  to  the  disgust  of  the  shippers,  were  sold  on 
the  whole  at  a  great  sacrifice.  The  nascent  indus- 
tries of  Massachusetts,  Connecticut,  and  Rhode 
Island,  inordinately  profitable  during  the  blockade, 
ceased  to  meet  running  expenses  and  were  gen- 
erally  closed. 

Misfortunes  seldom  come  singly.  Throughout 
New  England  the  summer  of  18 16  was  very  cold. 
In  Connecticut  severe  frosts  occurred  every  month. 
The  corn  crop  proved  almost  a  failure.  The  yield 
of  hay,  potatoes,  and  grain  did  not  exceed  one-half 
the  average.  An  unfruitful  season  was  followed  by 
a  bitter  winter  and  late  spring.  Many  cattle  died 
of  starvation.  Industrious  and  prudent  families  suf- 
fered from  lack  of  food.     A  sort  of  mania  impaired 


THE    HARTFORD    BANK  121 

the  judgment  of  people,  impelling  them  to  ill-con- 
sidered changes.  During  the  summer  hundreds 
abandoned  their  ancestral  homes  for  what  was  then 
known  as  "  the  West,"  beginning  life  anew  with 
the  few  movables  which  they  could  take  along  into 
the  wilderness.  Regrets  came  too  late  to  be 
availing. 

Duties  on  imports,  collected  in  the  motley  cur- 
rency of  the  period,  gave  the  government  a  large 
surplus,  but  it  had  no  facilities  for  transferring 
balances  to  points  where  funds  were  wanted  for  the 
payment  of  public  obligations.  Local  bank  notes 
were  accepted  for  taxes,  and  these  in  most  cases 
were  at  a  heavy  discount  a  few  miles  from  the 
place  of  issue.  The  need  of  fiscal  machinery  for 
handling  and  moving  the  resources  of  the  treasury, 
according  to  the  requirements  of  the  service,  and  a 
belief  that  the  institution  would  hasten  the  return 
of  specie  payments,  led  to  the  charter  of  the  second 
United  States  bank,  which  began  business  January 
7,  1 81 7.  Its  capital,  to  consist  of  specie  and  govern- 
ment stocks,  was  fixed  at  $35,000,000,  and  its 
duration  limited  to  twenty  years.  It  had  the  right 
to  establish  branches  according  to  the  judgment 
of  the   directors. 

Gentle  coercives  applied  by  the  Secretary  of  the 
Treasury  persuaded  the  banks  of  the  Middle  and 
Southern  States  to  agree  to  resume  on  the  20th  of 
the  following  February.  No  adequate  steps  in  the 
way  of  contraction  were  taken  to  insure .  the  success 


J  22  HISTORY    OF 

of  the  experiment.  Loans  were  shifted  from  one 
shoulder  to  another,  but  the  volume  remained  about 
the  same.  Very  early  the  United  States  Bank  im- 
ported seven  millions  bullion  at  a  cost  of  $800,000, 
but  it  went  out  as  fast  as  it  came  in.  April  21,  18 19, 
its  specie  reserve  had  fallen  to  $126,745.28.  By  mis- 
management it  had  been  brought  in  two  years  to 
the  verge  of  ruin.  A  change  of  presidents  was  fol- 
lowed by  a  change  of  policy.  Curtailment  of  loans 
and  withdrawal  of  circulation  restored  it  to  solvency, 
but  private  fortunes  were  wrecked  by  the  process. 

With  changes  in  the  dramatis  personce  and  minor 
details,  the  history  of  all  periods  of  inflation  can 
be  told  with  substantial  fidelity  in  one  formula: 
demoralization,  extravagance,  gambling,  the  robbery 
of  industry,  the  enrichment  in  many  cases  of  craft 
and  cunning,  a  redistribution  of  wealth  through 
artificial  contrivances,  followed  in  due  time  by  col- 
lapse, failures,  enforced  idleness,  the  dislocation  of 
manufactures  and   trade,  and  paralysis  of  slow  cure. 

Niless  Weekly  Register,  the  highest  contemporary 
authority,  gives  graphic  pictures  of  the  ruin  attend- 
ant on  the  crisis  of  18 19.  Of  the  sinister  aspect  of 
the  failures  it  says  :  — 

"  So  extensive  were  these  among  the  merchants  of  the 
cities  east  of  Baltimore,  that  it  seemed  to  be  disreputable  to 
stop  payment  for  less  than  $100,000;  the  fashionable  amount 
was  from  two  to  three  hundred  thousand  dollars,  and  the 
tip-top  quality,  the  support  of  whose  families  had  cost  them 
from  eight  to  twelve  thousand  dollars  a  year,  were  honored 
with   an   amount   of   debt   exceeding   five    hundred    thousand 


THE     HARTFORD     BANK  1 23 

dollars,  and  nearly  as  much  as  a  million  of  dollars.  The 
prodigality  and  waste  of  some  of  these  were  almost  beyond 
belief;  we  have  heard  that  the  furniture  of  a  single  parlor 
possessed  by  (we  cannot  say  belonging  to)  one  of  them  cost 
forty  thousand  dollars.  So  it  was  in  all  the  great  cities  — 
dash,  dash,  dash;  venders  of  tape  and  bobbins  transformed 
into  persons  of  high  blood,  and  the  sons  of  respectable  citi- 
zens converted  into  knaves  of  rank  through  speculation  and 
the  facilities  of  the  abominable  paper  system." 

Of  the  disturbance  and  distress  in  the  month 
of   August  the   Register  says:  — 

"It  is  estimated  that  there  are  twenty  thousand  persons 
daily  seeking  work  in  Philadelphia;  in  New  York  ten  thou- 
sand able-bodied  men  are  said  to  be  wandering  about  the 
streets  looking  for  it,  and  if  we  add  to  them  the  women 
who  desire  something  to  do,  the  amount  cannot  be  less 
than  twenty  thousand;  in  Baltimore  there  may  be  about  ten 
thousand  persons  in  unsteady  employment  or  actually  suffer- 
ing because  they  cannot  get  into  business.  We  know  several 
decent  men,  lately  good  Uvers,  who  now  subsist  on  such 
victuals  as  two  years  ago  they  would  not  have  given  their 
servants  in  the  kitchen." 

Connecticut  suffered  much  less  than  the  Mid- 
dle States,  because  she  had  not  departed  from  the 
maxims  of  sound  finance.  At  the  same  time,  slow- 
constriction  choked  her  prosperity.  Former  springs 
of  wealth  were  drying  up.  As  yet  were  discerni- 
ble only  dim  foreshado wings  of  the  era  of  mechan- 
ical invention  and  skill,  which,  from  exceptionally 
brilliant  development  in  the  State,  has  since  cor- 
respondingly enriched  her  people.  In  that  gloomy 
interval  of  transition,  the   crop   that  she  could   count 


J  24  HISTORY    OF 

•Upon  with  greatest  certainty  was  the  yearly  out- 
put of  emigrants  —  the  most  exhaustive  ever  re- 
moved  from  the   soil. 

Then,  too,  a  perverse  tendency  on  the  part  of 
things  to  turn  out  badly  brought  confusion  to  well- 
arranged  plans.  Shrewdness  missed  the  mark. 
Possessions  won  by  industry  and  prudence  evapo- 
rated. Many  who  supposed  they  had  accumulated 
a  competency  for  old  age  awoke  to  the  realization 
that  they  were  poor,  and  that  it  was  too  late  to 
begin  again. 

In  the  cataclysm  reverses  thickened  around 
John  Caldwell.  Losses  arising  in  his  own  business 
were  reinforced  by  others  incurred  in  attempts  to 
aid  different  members  of  his  family.  Having  easily 
held  the  position  of  trusted  leader  in  the  civil  and 
mercantile  affairs  of  the  town,  while  a  full  genera- 
tion were  crossing  the  stage,  in  June,  1819,  he  re- 
tired from  the  presidency  of  the  bank  after  an 
honorable  incumbency  of  twenty-seven  years.  He 
had  long  been  the  last  official  survivor  of  the 
original   directory. 

For  a  quarter  of  a  century  the  institution  had 
exerted  an  influence,  not  only  in  financial  matters 
but  in  politics  and  the  church,  that  has  never  been 
paralleled  in  the  history  of  the  State,  and  a  repe- 
tition of  which  from  changed  conditions  long  ago 
ceased  to  be  possible. 


THE    HARTFORD    BANK  12: 


CHAPTER  VII 

THE  SECOND   GENERATION 

JUNE  10,  1 8 19,  General  Nathaniel  Terry  was 
elected  president  and  Horace  Burr  continued 
as  cashier.  For  several  months  the  directors 
had  been  reefing  sails.  They  scrutinized  with  more 
care  the  credit  of  borrowers  and  the  character  of 
accommodations.  On  the  first  of  January  two-  sets 
of  rules  were  adopted  looking  to  increased  caution 
in  the  conduct  of  the  business.  It  was  agreed  that 
notes  put  into  the  hands  of  an  attorney  for  collec- 
tion should  not  be  renewed.  Any  name  appearing 
as  drawer,  acceptor,  or  endorser  on  paper  lying 
unpaid,  was  not  to  be  received  on  paper  offered 
for  discount.  All  notes  unpaid  at  the  closing  of 
the  doors  on  the  last  day  of  grace  must  be  placed 
with  the  attorney  for  collection  immediately.  Co- 
partnerships desiring  favors  must  disclose  the  names 
of  the  members  in  a  certificate  signed  by  them. 
Any  director  offering  a  note  for  discount  is  recom- 
mended to  be  absent  till  a  decision  is  made  thereon. 
The  attorney  must  report  the  situation  of  all  notes 
placed  with  him  for  collection  as  often  as  once  in 
thirty  days.  One  partner  must  not  be  accepted  as 
indorser    for   another.      The    cashier    is    required    to 


126  HISTORY     OF 

report  to  the  directors  at  their  next  meeting  when- 
ever any  account  is  overdrawn  and  not  made  good 
immediately  on  notice,  or  whenever  a  person  habit- 
ually and  knowingly  overdraws. 

General  Nathaniel  Terry,  second  president,  was 
born  at  Enfield,  Conn.,  January  30,  1768;  graduated 
at  Yale  College  in  1786,  and  was  admitted  to  the 
bar  in  1790.  Having  moved  to  Hartford,  he  repre- 
resented  the  town  twelve  sessions  in  the  General 
Assembly ;  was  judge  of  the  county  court,  1 807-9  5 
member  of  the  Fifteenth  Congress,  181 7- 19;  served 
in  the  constitutional  convention  of  1818,  and  was 
mayor  of  the  city,  1824-31.  He  was  president  of 
the  Hartford  Fire  Insurance  Company  during  its 
prolonged  infancy  from  1810  to  1835.  He  married, 
March  14,  1798,  Catharine,  daughter  of  Colonel  Jere- 
miah Wadsworth.  After  a  career  of  striking  vicissi- 
tudes he  died  at  New  Haven,  June    14,   1844. 

General  Terry  commanded  the  Governor's  Foot 
Guard  from  1802  to  181 3,  experiencing  in  military 
display  the  keenest  delight.  Six  feet  and  four 
inches  tall,  erect  and  imperious,  he  appeared  in 
uniform  the  born  soldier.  But  for  the  details  of 
business  he  had  little  aptitude,  and  hence  the  selec- 
tion  proved   unfortunate   for  the   bank. 

Recovery  from  the  panic  of  18 19  made  slow 
headway.  During  1820  and  the  first  six  months  of 
1 82 1,  the  prices  of  land,  fuel,  beef,  and  flour  ruled 
at  less  than  one-half  of  the  prices  of  181 8.  In  our 
cities    many    stores    were    empty    and    others    found 


THE    HARTFORD    BANK  1 27 

tenants  at  greatly  reduced  rents.  Laborers  were 
working  on  short  time  for  low  wages.  In  reversal 
of  prevalent  movements,  population  for  a  while 
drifted  from  town  to  country.  Amid  the  general 
disquiet,  Connecticut  did  not  wait  for  the  horse  to 
be  stolen  before  trying  to  lock  the  stable.  In  May, 
1822,  the  General  Assembly  passed  an  act  requir- 
ing the  incorporated  banks  of  the  State  to  lodge 
annually,  in  the  office  of  the  comptroller,  sworn 
statements  from  the  cashiers  of  the  amount  of 
capital  stock,  of  the  debts  due  them,  of  moneys  on 
deposit,  of  notes  in  circulation,  and  generally  of  the 
state  of  the  bank  on  the  first  Monday  of  May, 
changed  the  next  year  to  the  first  Monday  of  March. 
Wide  latitude  was  allowed  in  the  method  of  render- 
ing the  returns.  No  provision  was  made  for  per- 
sonal inspections,  or  for  the  publication  of  the 
reports.  As  our  banks  had  pursued  a  conservative 
course,  and  as  no  machinery  was  supplied  for  the 
correction  of  abuses,  the  law  took  but  a  slight  step 
forward  in  the  way  of  supervision.  Perhaps  the 
Legislature  wished  to  emphasize  the  right  of  the 
people  to  know  the  condition  of  the  institutions 
which  furnished  their  currency,  and  had  custody  of 
their  funds. 

December  24,  1821,  the  directors  voted  that  the 
cashier  pay  to  the  watch  wardens  of  the  city  twenty 
dollars  toward  supporting  a  watch  during  the 
winter.  By  vote  of  the  council  the  watch  at  this 
time   was  to  consist  of  not  less  than  two  nor  more 


j2g  HISTORY    OF 

than  six  persons,  four  being  the  usual  quota. 
Expenses  were  met  by  voluntary  subscriptions  in 
the  several  wards,  the  agreement  binding  each 
subscriber  to  serve  the  number  of  nights  affixed  to 
his  name,  or  "to  pay  one  dollar  for  each  night  by 
them  subscribed  for  the  purpose  of  hiring  substi- 
tutes." Turns  of  service  were  designated  by  lot 
under  direction  of  one  of  the  three  wardens.  From 
December  ist  till  April  ist,  the  watch  was  set  at 
ten  o'clock  P.  M.,  and  relieved  at  six  A.  M.,  the 
warden  in  charge  receiving  twenty-five  cents  a 
night  for  his  services.  Persons  on  duty  were 
required  to  "  carefully  and  vigilantly  watch  for  the 
safety  of  the  city  from  fire,  thieves,  and  other  dis- 
orderly persons  who  may  be  abroad  in  the  streets 
or  elsewhere."  They  were  authorized  to  arrest  and 
hold  for  examination  all  suspicious  characters  found 
straying  about  after  ten  o'clock.  Such  were  the 
beginnings   of   our  police   system. 

In  November,  1821,  steps  were  taken  to  light 
the  city  by  lamps,  to  be  located  from  time  to  time 
as  needed. 

Circumstances,  long  forgotten,  constrained  the 
directors,  in  December,  1822,  to  place  on  record 
the  "  opinion  that  the  cashier  and  clerks  of  this 
bank  ought  not  to  be  engaged  or  concerned  in 
any  mercantile  business  or  speculation,"  and  to  add 
by  way  of  warning  that  ''  the  Board  expect  them 
to   conform   to   this   opinion." 

In    1824,   the  Connecticut  branch   of    the   United 


THE    HARTFORD    BANK  12q 

States  Bank  was  moved  from  Middletown  to  this 
city,  the  Hartford  Bank,  notwithstanding  the  rival- 
ries of  business,  tendering  the  use  of  its  vaults 
and  other  facilities  while  permanent  accommoda- 
tions were  in  progress. 

One  of  the  severest  panics  known  to  history- 
struck  England  in  1825.  A  period  of  unusual  -pros- 
perity for  manufactures,  accompanied  by  large  dis- 
bursements in  redemption  of  consols,  on  reduction 
of  the  rate  of  interest  from  five  to  four  per  cent., 
provoked  a  spirit  of  reckless  speculation.  Joint 
stock  companies,  controlling  an  enormous  amount 
of  capital,  swarmed  into  existence.  Promoters  of  all 
sorts  of  chimerical  schemes,  in  both  hemispheres, 
solicited  cash  from  the  credulous,  and  in  such  sea- 
sons of  delirium  credulity  becomes  contagious. 
Twenty  millions  sterling  were  subscribed  for  min- 
ing projects  in  South  America.  When  the  tide 
turned,  and  the  drop  in  prices  came,  many  banks 
and  mercantile  houses  failed.  The  stock  of  coin 
and  bullion,  held  by  the  Bank  of  England,  fell 
from  ;{^  10,72 1,000,  December  24,  1824,  to  ^1,260,000, 
December   25,    1825. 

So  extensive  and  close  had  become  the  connec- 
tions between  Great  Britain  and  the  United  States 
that  our  people,  though  in  much  sounder  condition, 
were  drawn  into  the  whirlpool.  Two  bank  failures 
occurred  in  Connecticut,  one  through  mismanage- 
ment, and  the  other  through  fraud.  The  Eagle- 
Bank  of  New  Haven,  the  first  in  the  State  to 
9 


j-,Q  HISTORY    OP 

break,  suspended  in  September.  George  Hoadly, 
the  president,  whose  reputation  as  a  financier  was 
such  that  he  dictated  the  choice  of  directors,  and 
managed  the  institution  autocratically,  on  a  capital 
of  $623,800,  advanced  to  four  persons  and  concerns 
on  nebulous  security,  $1,451,507.  The  committee  of 
investigation  found  about  $300,000  of  passable  assets 
against  liabilities  of  over  $1,500,000,  outside  of  cap- 
ital  stock. 

If  possible  the  case  of  the  Derby  Bank  was  still 
worse.  Finding  profits  unsatisfactory,  an  honorable 
management  had  wound  up  its  affairs  and  dis- 
tributed the  assets.  Shortly  before  the  panic  a 
combination  of  swindlers  in  New  York  City  picked 
up  the  dormant  charter  and  proceeded  to  issue 
bills  which  bore  marks  of  fraud  on  their  face. 
About  $80,000  were  put  in  circulation,  the  holders 
obtaining  a  small  dividend  from  the  sale  of  the 
banking-house,  the  only  asset  left  in  sight  when 
the  bubble  burst.  At  the  next  session  of  the 
Legislature   the   charter  was   repealed. 

In  December,  1825,  the  semi-annual  dividend  of 
the  Hartford  Bank  was  dropped  from  three  to  two 
per  cent.,  and  dividends  continued  at  this  rate  till 
June,  1828,  when  they  were  suspended  for  two 
years. 

About  this  time  the  "  Boston  Alliance "  re- 
doubled its  efforts  to  compel  the  banks  of  New 
England  to  redeem  their  bills  in  specie,  the  bills  of 
other   New   England   banks,  or  in   Boston  exchange, 


^Jyy  ■ /7'^</>n^^LruZ/? 


THE    HARTFORD    BANK  j^j 

at  the  Suffolk  Bank,  and  to  keep  there  deposits 
sufficient  to  cover  the  issues  of  each,  accumulating 
at  the  agency  during  the  ebb  and  flow  of  the 
ceaseless  round  of  settlements.  For  a  time  our 
banks  resisted  the  "Alliance"  on  the  ground  that 
the  system  was  arbitrary  and  unjust,  and  needlessly 
curtailed  the  profits  of  circulation.  Opposition,  how- 
ever, gradually  died  away,  and  the  method  became 
and  continued  an  essential  feature  of  New  England 
banking  till  the  adoption  of  the  national  system 
removed   the   necessity. 

At  the  annual  meeting  of  the  stockholders, 
June  12,  1828,  the  opposition  to  General  Terry  had 
gathered  sufficient  strength  to  secure  his  defeat. 
Joseph  Trumbull  was  elected  president,  and  Horace 
Burr  continued   as  cashier. 

Joseph  Trumbull,  son  of  David  and  grandson 
of  the  first  governor,  Jonathan  Trumbull,  was  bom 
at  Lebanon,  Dec.  7,  1782;  graduated  1801,  at  Yale 
College,  which  conferred  upon  him  the  degree  of 
LL.D.  in  1849;  ^^d  was  admitted  to  the  bar  in 
Windham  in  1803.  On  looking  over  the  field  with 
a  view  to  future  advancement,  he  decided  to  make 
Hartford  his  home.  He  was  elected  to  the  Legis- 
lature, 1832,  1848,  and  1 851;  was  chosen  to  fill  the 
vacancy  in  the  Twenty-fourth  Congress  left  by  the 
resignation  of  William  W.  Ellsworth,  and  later 
served  in  the  same  body  two  terms,  1839-43;  was 
governor  one  year  from  May,  1849;  ^^^  <li^<i 
August  4,    1 86 1. 


152  HISTORY    OF 

In  the  overturn  of  control  a  defalcation  was 
uncovered.  For  thirteen  years  Daniel  Hinsdale,  the 
book-keeper,  had  been  tapping  the  till  and  conceal- 
ing the  thefts  by  false  entries  and  false  footings  on 
the  half-yearly  balance  sheets.  The  total  stealings, 
made  up  of  many  items,  amounted  to  $31,020.23. 
Property  estimated  to  be  worth  $9,653.67  was  con- 
veyed to  the  bank  by  way  of  partial  indemnity, 
leaving  a  net  loss  of  $21,366.56.  By  his  own  ac- 
count, the  larger  part  of  the  money  taken  was 
expended  for  lottery  tickets.  He  was  supposed  to 
be  unusually  fortunate  in  his  ventures.  Comment- 
ing on  the  affair,  the  New  York  Journal  of  Commerce 
said,  "  We  happen  to  know  that  a  broker  in  this 
city,  some  years  since,  paid  him  a  prize  of  ten 
thousand  dollars."  In  the  early  days  of  the  repub- 
lic the  country  swarmed  with  lotteries,  which,  under 
the  sanction  of  law,  and  with  the  approval  of  good 
people,  were  got  up  to  promote  various  works  of 
public  utility,  including  the  building  of  churches 
and  the  endowment  of  institutions  of  learning.  It 
required  many  examples  of  loss  of  character  and 
of  financial  ruin,  due  to  this  form  of  gambling,  to 
convince   the  public   of  its   pernicious  tendencies. 

The  bank  was  now  contending  with  the 
troubles  of  the  only  season  of  adversity  in  its 
experience,  touching  the  lowest  point  of  depression 
in  the  year  1828.  Mr.  Burr  married  a  sister  of 
Hinsdale,  and  naturally  enough  the  closeness  of 
the    ties   between    the    two   men   gave   rise    to   ugly 


THE    HARTFORD    BANK  j  -,  -. 

rumors.  After  an  examination  of  the  books,  the 
directors,  on  the  26th  of  July,  unanimously  passed 
a  vote  exonerating  Burr  from  complicity  in  the 
frauds  and  from  knowledge  of  them  till  the  facts 
became  public.  On  the  same  day  his  resignation 
was  accepted  and  Henry  A.  Perkins  was  elected  to 
fill   the   vacancy. 

Mr.  Perkins  brought  to  the  place  a  practical 
knowledge  of  the  business  acquired  in  Hartford  and 
Litchfield,  indomitable  energy,  unflinching  courage, 
singleness  of  purpose,  and  a  conscience  that  never 
deflected  from  the  line  of  rectitude.  Inborn  truth- 
fulness did  not  permit  him  to  soften  refusals  by 
kindly  prevarications,  or  to  pad  a  "  no "  with  pala- 
ver to  deaden  the  force  of  the  impact.  In  his 
intercourse  with  the  world  prophetic  flashes  of  the 
suaviter  in  modo  were  lost  to  view  amid  exuberant 
activities  of  the  fortiter  in  re.  To  borrowers  his 
communication  was  Yea,  yea ;  Nay,  nay.  When 
invited  to  the  position  he  was  expected  to  apply 
heroic  remedies  suited  to  the  crisis,  and  as  the 
event  proved,  he  did  not  disappoint  expectations 
raised  by  his  previous   record. 

For  thirty-three  years  Mr.  Perkins  was  not 
absent  from  his  desk  a  day  from  sickness  or  for 
recreation,  and  the  continuity  was  at  last  broken 
by  indulgence  in  the  dissipation  of  a  hurried  trip 
to  Saratoga.  Fidelity  of  this  unique  quality,  united 
with  intelligence  and  technical  skill,  furnish  the 
strongest   possible   guarantees  of  success. 


134 


HISTORY    OF 


Reports  to  the  comptroller,  tinder  the  law  of 
1822,  before  and  after  the  change  of  management, 
differ  widely  in  extent  and  precision  of  informa- 
tion conveyed.  The  statement  of  the  condition  of 
the  bank,  December  13,  1827,  sworn  to  May  8,  1828, 
runs  thus  : 


Capital  stock, 
Bank  notes  in  cir- 
culation, 


$1,261,100.00 
412,415.06 


$1,673,515-06 


Bills  discounted  on 

hand,  $1,444,823.37 

Bank  notes  of  other 

banks,  35.616.93 

Specie,  63,110.58 

Balances  in  favor  of 

the  bank,  129,964.18 

$1,673,515.06 


No  debit  is  made  for  deposits  or  minor  items, 
neither  is  credit  taken  for  the  banking-house  or 
any  assets  except  bills  receivable  and  cash  on 
hand.  How  a  balance  could  be  struck  with  such 
omissions   is  a  lost  art  of  book-keeping. 

The  statement  of  the  condition  of  the  bank, 
March  2,  1829,  —  the  first  made  by  Mr.  Perkins  — 
discloses  the  "  frozen  facts,"  with  no  warmth  of 
euphemistic  phrase  to  take   off  the   chill. 

STATEMENT    FOR    MARCH    2,    1 829. 


Capital  stock,  $1,252,900.00 

Bills  in  circulation,        362,663.06 
Deposits  except  from 

banks,  101,530.95 

Deposits  from  banks,      22,426.84 
Dividends  unpaid,  1,014.03 


$1,740,534.88 


Due  the  bank,  con- 
sidered good. 

Bank  stock. 

Cash  on  hand, 

Cash  deposited  in 
other  banks, 

Real  estate  except 
Banking-house, 

Banking-house , 

Deficiency, 


$1,396,902.56 

104,300.00 

84,946.68 

53,746.10 

9,418.26 
24,169.54 
67,051.74 

$1,740,534.88 


THE    HARTFORD    BANK  j,t- 

If  for  "  deficiency "  had  been  written  "  profit 
and  loss,"  or  some  mild  equivalent  the  words  would 
have  been  more  soothing  to  the  sensibilities  of 
stockholders,  but  would  have  expressed  with  less 
exactness  the  cashier's  conception  of  the  require- 
ments of  truth.  Indeed,  there  prevailed  a  disposi- 
tion to  eliminate  from  assets  any  claim  that  could 
not  bear  the  closest  scrutiny.  At  the  annual  meet- 
ing of  stockholders,  in  June,  1835,  they  voted  to 
reduce  the  valuation  of  the  banking-house  to 
$18,000,  charging  the  difference  to  profit  and  loss, 
on  the  ground  that  the  property  ought  not  to 
stand  upon  the  books,  or  in  any  report  to  the 
General   Assembly,   above   its  real   value. 

Of  course  the  dividend  for  December,  1828,  was 
passed,  every  one  familiar  with  the  situation  hav- 
ing foreseen  the  necessity.  In  connection  with  the 
event,  Mr.  Perkins  often  quoted  the  comment  of  an 
antiquated  and  not  over-amiable  female  stockholder 
from  Glastonbury,  who  always  came  in  person  to 
collect  her  dividends.  Dropping  in  at  the  usual 
time  she  asked  the  clerk  for  her  "interest."  As 
he  failed  dismally  in  the  attempt  to  make  the 
case  clear  to  her  mind,  the  cashier  stepped  forward 
to  try  his  skill  at  explanation.  She  insisted  that 
she  had  paid  in  her  money  and  was  entitled  to  her 
"  interest."  With  much  iteration  he  set  forth  the 
losses  of  the  bank  and  the  need  of  retaining  for 
a  while  the  profits.  More  bewildered  than  con- 
vinced,  she   at   length   moved    toward    the   door,   but 


J  ^5  HISTORY    OF 

returned  for  a  parting  shot,  "Well,  I  suppose  your 
salary  goes  right  on,  whether  I  get  my  interest  or 
not." 

In  encounters  with  delinquents  the  personal 
force  of  Mr.  Perkins  usually  won  quick  and  decisive 
victory,  but  he  occasionally  met  a  customer  who 
was  slow  to  succumb.  To  X.  Y.,  an  eccentric  char- 
acter whose  account  was  overdrawn,  he  sent  in 
rapid  succession  several  notices  stating  the  fact  and 
demanding  that  the  deficit  be  made  good.  No 
attention  having  been  paid  to  the  missives,  on  the 
third  or  fourth  day  he  called  on  the  offender,  and 
without  preamble  stated  vigorously  his  view  of  the 
case.  The  only  reply  elicited  by  the  torrent  of 
indignation  was,   "  Sit   down,   Henry." 

Again  the  ground  was  gone  over  and  again 
came  the  imperturbable  invitation,  "Sit  down, 
Henry." 

Amazed  at  the  audacity  of  a  man  who  could 
keep  cool  beneath  the  imminence  of  an  overdrawn 
bank  account,  Mr,  Perkins  held  his  breath  in  aston- 
ishment, wondering  what  would  come  next. 

"  Henry,"  resumed  X.  Y.,  "  you  are  depositing 
with  me  now.  Sometimes  I  deposit  with  you. 
When  I  have  money  in  your  bank  I  don't  write 
you  a  note  or  send  you  a  messenger  to  tell  you 
of   it.     I   suppose  you   know   it." 

At  the  end  of  the  first  skirmish  Y.  seemed  to 
have  the  lead;  but,  like  the  rude  boy  found  in  the 
apple    tree    of    Webster's    speller,    he    soon    learned 


THE    HARTFORD    BANK  1^7 

that  his  antagonist  had  more  effective  weapons  than 
words  and  tufts  of  grass.  The  account  was  made 
good. 

May  31,  1830,  regular  semi-annual  dividends 
were   resumed   at   the   rate   of   six  per   cent,   a  year. 

Francis  Parsons  was  elected  attorney  for  the 
bank  June  14,  1832,  and  was  succeeded  by  his  son, 
John   Caldwell   Parsons,   June    13,   1861. 

In  1835  the  General  Assembly  enacted  that 
from  January  15,  1836,  no  bank  in  the  State  .should 
retain  as  surplus  earnings  more  than  five  per  cent, 
on  the  amount  of  its  capital  stock  actually  paid  in. 
The  original  draft  of  the  bill,  the  offspring  of  igno- 
rance and  meddlesomeness,  written  in  a  scrawling 
hand  on  a  fragment  of  paper,  was  tossed  into  the 
legislative  hopper  to  be  ground  like  countless  other 
crudities  into  statutory  law.  In  1838  the  act  was 
repealed. 

The  same  body  passed  an  act  forbidding  the 
issue  by  any  bank  in  the  State  of  any  note  of  less 
denomination  than  two  dollars  after  July  i,  1835 
and  of  less  than  three  dollars  after  January  i,  1836. 
Penalties  were  provided  for  the  punishment  of  per- 
sons and  corporations  that  should  either  receive  or 
offer  to  pay  bills  of  the  prohibited  denominations. 
In  1837  the  minimum  was  fixed  at  five  dollars, 
from   July    i,    1838. 

March  2,  1835,  the  surplus  of  the  Hartford 
Bank  had  grown  to  $93,472.59.  The  following  June 
the  directors  declared  a  dividend  of  $3.50  per  share 


j-g  HISTORY    OF 

for  the   previous  six  months  and   an   extra   of   $2.50 
from   the   surplus. 

In  1836,  by  a  resolution  of  the  General  Assembly, 
the  State  Treasurer,  Comptroller,  and  Commissioner 
of  the  School  Fund  were  appointed  a  committee  to 
examine  the  banks  of  the  State,  with  authority  to 
inspect  all  books,  accounts,  and  papers,  and  to 
examine  under  oath  all  officers  and  agents.  On  the 
19th  of  September  following,  Jeremiah  Brown,  Wm. 
Field,  and  Seth  P.  Beers,  incumbents  of  the  respec- 
tive offices,  issued  a  circular  letter  to  the  cashiers 
of  the  thirty-one  banks  in  Connecticut,  calling  for 
a  detailed  statement  of  assets  and  liabilities,  as 
these  should  stand  at  the  close  of  business  on  the 
first  day  of  October.  While  the  Hartford  Bank  had 
nothing  whatever  to  conceal,  the  directors  contended 
that  the  proposed  method  of  inquiring  into  its 
affairs  encroached  upon  the  privileges  of  its  charter, 
especially  as  modified  by  the  contract  of  1803  for 
the  investment  of  the  money  of  the  State  in  its 
shares,  and  embodied  in  a  public  act  then  passed. 
By  the  terms  of  the  agreement  the  State  was 
entitled  to  all  dividends  accruing  upon  the  sub- 
scriptions, with  liberty  to  withdraw  the  same  upon 
six  months'  notice.  The  comptroller  was  empowered 
to  call  for  a  statement  not  oftener  than  once  a 
month,  with  a  right  to  inspect  the  books  relative 
to  its  correctness;  and  in  case  the  subscriptions 
exceeded  $5,000,  the  State  could  appoint  a  director 
to    watch    its    interests.      "And    the    said    State   will 


THE    HARTFORD    BANK  I^q 

not  claim  or  exercise  any  other  agency  in  the 
choice  of  officers  in  said  bank,  or  the  management 
of  its   concerns,   than   is  expressed  in   this  act." 

Joseph  Trumbull,  David  Watkinson,  and  James 
B.  Hosmer,  to  whom  the  circular  was  referred, 
made  a  report  to  the  directors,  September  28th,  and 
in  addition  to  the  claims  set  forth  above,  further 
contended  that  the  charter  itself  was  irrevocable, 
and  not  subject  to  amendment  without  consent  of 
the   stockholders. 

The  committee  took  the  ground,  however,  that 
the  board  should  give  respectful  attention  to  the 
requisitions  of  the  General  Assembly,  and  avoid 
even  a  suspicion  of  unwillingness  to  grant  a  full 
examination  of  the  bank,  and,  so  far  as  compatible 
with  the  trust  reposed  in  them,  to  gratify  all 
reasonable  wishes  of  the  community  as  to  its  sound- 
ness, "fully  persuaded  that  no  bank  in  the  country 
has  less  reason  to  fear  or  shun  a  strict  and  rigid 
scrutiny." 

The  committee,  therefore,  recommended  that  the 
cashier  be  instructed  to  make  full  answers  to  all  the 
questions  proposed,  and  that  the  return  be  accom- 
panied by  a  resolution  of  the  board  showing  that 
they  do  not  thereby  intend  to  be  understood  as 
relinquishing,  or  as  feeling  that  they  have  power 
to  relinquish,  any  right  or  privilege  conferred  upon 
the  stockholders  by  their  charter  and  by  subsequent 
acts  in   their  favor. 

The  same  day  the  directors  adopted  the  report 
and  voted  to  instruct  the   cashier  accordingly. 


I^O  HISTORY    OF 

In  1837,  the  General  Assembly  provided  for  the 
annual  appointment  by  the  Legislature  of  two  bank 
commissioners,  whose  expenses  and  pay  of  three 
dollars  per  day  each  while  employed  on  the  busi- 
ness, were  to  be  apportioned  among  the  banks 
according  to  the   amount  of  their  capital. 

To  the  inquiries  of  John  C.  Palmer  and  C.  F. 
Cleveland,  the  first  appointees.  President  Trumbull, 
by  direction  of  the  board,  replied,  repeating  the 
points  made  the  previous  year  and  adding,  in 
regard  to  the  matter  of  expense,  that  the  directors 
did  not  deem  themselves  authorized  to  appropriate 
money  of  the  stockholders  in  payment  for  an 
examination  unasked  for  by  them,  and,  as  they 
conceived,  wholly  at  variance  with  their  chartered 
rights. 

The  City  and  the  Mechanics  banks  of  New 
Haven  reached  substantially  the  same  conclusion. 
The  General  Assembly  avoided  joining  issue  on  the 
question  by  the  passage  of  a  resolution,  in  1838, 
making  it  the  duty  of  Horatio  Alden  and  George 
Putnam,  auditors,  to  draw  an  order  upon  the  treas- 
urer in  favor  of  the  commissioners  for  such  sum 
as  the  three  banks  above-named  were  required  to 
contribute,  under  provisions  of  the  law  of  1837,  to 
be  paid  out  of  any  money  in  the  treasury  not  other- 
wise  appropriated. 

In  1 841,  when  the  commissioners  presented  a 
bill  of  $71.21  for  similar  services,  the  board  voted 
to  pay  it  without  acknowledging  any  legal  liability 


THE     HARTFORD     BANK  I^j 

for  reasons  already  given,  but  as  an  act  of  grace, 
believing  "  that  the  services  of  judicious  bank  com- 
missioners are  highly  beneficial  to  the  public 
interest." 

While  the  system  of  State  inspection  was 
impending  and  new,  bank  officials  were  inclined  to 
regard  it  as  an  impertinence  flavored  with  censure. 
Greater  familiarity  with  the  theory  and  practise  of 
supervision  convinced  them  both  that  the  people 
were  entitled  to  know  the  standing  of  the  institu- 
tions which  supplied  them  with  currency,  and  that 
such  as  were  deserving  of  confidence  could  only 
be  helped  by  diffusion  of  the  facts.  Hence,  gradu- 
ally, opposition   gave   way   to   approval. 

In  1836,  and  earlier,  as  in  1891,  under  the 
adroit  manipulation  of  speculators,  the  public  clam- 
ored for  cheap  money,  and  for  a  great  deal  of  it. 
Quality  mattered  little,  provided  quantity  could  be 
depended  upon  to  make  prices  soar  skyward.  On 
the  rising  tide  and  swelling  its  volume,  many  su- 
perfluous banks  were  created.  These  met  the  de- 
mand by  copious  issues  of  paper,  based  not  on 
solid  assets  but  bound  up  largely  in  the  fortunes 
of  the  schemes  they  were  used  to  promote.  Borne 
upward  by  the  unhealthy  stimulus,  public  land 
sales  rose  in  round  numbers  from  $4,800,000  in 
1834,  to  $14,700,000  in  1835,  and  to  $24,800,000  in 
1836.  In  such  condition  of  unstable  equilibrium  a 
crash  was  unavoidable. 

The   storm  broke   in    1837  —  a  year  ever  memor- 


J.  2  HISTORY    OF 

able  for  extent  and  blackness  of  speculative  and 
commercial  disaster.  The  disease  was  not  produced, 
but  the  symptoms  were  temporarily  aggravated  by 
the  bitterness  with  which  President  Jackson  op- 
posed the  re-charter  of  the  second  United  States 
Bank,  and  by  the  uncompromising  persistence  with 
which  both  Jackson  and  Van  Buren  fought  to  se- 
cure the  establishment  of  an  independent  treasury, 
and  thus  divorce  the  custody  of  the  public  funds 
from   the   banking   system   of   the   country. 

May  loth,  the  banks  of  New  York  suspended 
specie  payments.  On  the  following  day  the  five 
discount  banks  of  Hartford  united  in  a  card  to  the 
public  announcing  that  they  had  decided  on  a 
temporary  suspension,  as  otherwise  they  must  re- 
fuse all  further  accommodations  at  whatever  sacri- 
fice to  individuals,  while  their  specie  would  be  de- 
manded and  carried  into  other  States.  Committees 
selected  from  each,  for  the  weight  of  their  names, 
pledged  their  character  that  the  banks  to  which 
they  respectively  belonged  "were  safe  and  sound 
beyond  contingency."  In  conclusion,  the  circular 
says,  "  Each  bank  in  Hartford  will  receive  the  bills 
of  all  the  other  banks  in  Hartford  on  deposit  and 
in  payments  of  notes.  These  banks  have  more 
than  four  dollars  due  them  for  every  dollar  of 
their  bills  in  circulation."  Joseph  Trumbull,  David 
Watkinson,  and  Calvin  Day  signed  the  paper  as 
committee  for  the  Hartford  Bank.  Annexed  to  it 
was  an  extract  from  the   report  of  the   special  com- 


THE    HARTFORD    BANK  I^^ 

mittee  to  the  General  Assembly,  presented  May  gth, 
in  which  the  opinion  is  expressed  that  the  sound- 
ness and  solvency  of  all  the  banks  examined  by 
them  is  unquestionable,  and  the  public  are  invited 
to  place  entire  confidence  in  their  ability  to  meet 
all   engagements. 

At  the  close  of  business  on  the  last  Saturday 
in  March,  1837,  the  thirty-one  banks  of  Connecticut 
had  of  bills  in  circulation  $3,998,325.30,  and  of  coin 
on  hand  $415,386.10,  the  ratio  of  coin  to  circula- 
tion being  .104  nearly.  A  year  later  the  circulation 
had  been  reduced  to  $1,920,552.45  and  the  specie 
increased  to  $535,447.86,  the  ratio  now  being  .28 
nearly.  Within  the  same  period  the  Hartford  Bank 
reduced  its  outstanding  notes  from  $434,079.06  to 
$77,552.06,  and  increased  its  specie  from  $46,661.44 
to  $65,263.92,  and  at  the  date  of  resumption  (May  10, 
1838)  was  prepared,  if  called  upon,  to  redeem  every 
bill  in  coin. 

The  impregnable  strength  of  our  banks  during 
the  subsequent  depression  that  culminated  in  the 
autumn  of  1839,  when  three  hundred  and  forty- 
three,  mostly  at  the  West  and  South,  failed,  was 
drawn  not  so  much  from  the  specie  in  their  vaults 
as  from  the  solidity  of  the  resources  of  customers, 
upon  which  rested  ultimately  their  bills  receivable. 
To  a  great  extent  those  ill-starred  concerns  "  of  few 
days  and  full  of  trouble ",  held  against  their  liabili- 
ties securities  based  on  wild  lands  and  mines,  on 
railways  into  the  wilderness,  on  corner  lots  in  towns 


J..  HISTORY    OF 

not  yet  cleared  of  forests,  and,  in  short,  made  up 
of  drafts  drawn  by  imaginative  faith  on  the  glitter- 
ing but  delusive  possibilities  of  the  future. 

With  the  Hartford  Bank  the  progress  of  recu- 
peration after  the  troubles  of  1828  was  rapid  and 
free  from  reverses.  The  cashier,  himself  the  in- 
carnation of  precision  and  punctuality,  introduced 
methods  of  exactness  and  economy,  using  the  knife 
freely  in  cases  calling  for  surgery.  Many  illustra- 
tive  anecdotes  might  be   told. 

One  day  a  person  offered  for  discount  a  piece 
of  accommodation  paper  with  a  good  indorser.  "  Is 
this  a  loan  which  you  expect  to  continue  or  to 
pay?"   asked  the   cashier. 

"  Oh,  I  shall  pay  it  when  due,  or  at  any  rate  a 
part   of  it." 

When  the  note  matured  the  borrower  reappeared 
and  said  he  should  like  to  renew  it. 

"  We  will  not  do  it,"  replied  the  cashier. 

"  I  do  not  see  how  I  can  pay  it." 

"We  will  not  do  it.     That  is  all." 

To  the  pleadings  of  the  borrower  he  answered, 
"  Did  you  not  say  you  would  pay  the  note  at  matu- 
rity, or  at  least  a  part  of  it?" 

"  Yes,  that  is  so ;  but  I  do  not  see  how  I  can 
pay  anything." 

"You  can  pay  something,  can't  you?" 

"  No,  I  don't  see  how  it  is  possible." 

"  Well,  you  can  pay  a  dollar,  can't  you  ? " 

"Yes,  I  can  do  that." 


THE    HARTFORD    BANK  I^c 

"Very  well,  pay  a  dollar,  and  we  will  renew  the 
note  for  the  rest." 

This  was  accordingly  done,  the  principal  being 
reduced  by  one  .  dollar. 

Mr.  Trumbull,  the  president,  whose  inbred 
courtesy  was  heightened  by  political  aspirations, 
occasionally  intervened  so  far  as  to  apply  emollients 
to  the  bruises,  but  rarely  or  never  interfered  with 
the   vigorous  policy  of  the   cashier. 

Through  the  early  commissioners  the  complaints 
and  jealousies  of  the  public  first  found  efficient  ex. 
pression.  For  a  long  time  the  belief  penetrated  the 
community  that  everywhere  in  the  conduct  of  the 
business,  managers  and  their  friends,  especially  in 
emergencies,  were  accommodated  to  the  neglect  of 
the  less  favored,  whose  requirements  were  equally 
urgent.  Annual  reports  recur  again  and  again  to 
the  evil  of  large  discounts  to  directors,  and  suggest 
remedial  legislation.  In  answer  to  the  first  call,  an 
act  was  passed  in  1838  disqualifying  a  person  to 
serve  as  director  in  any  bank  whose  indebtedness 
to  the  same  exceeded  nine  thousand  dollars  above 
the  stock  standing  in  his  name.  A  provision  of 
such  latitude  presumes  sinister  origin. 

The  next  year  the  commissioners  renew  the 
discussion,  showing  how  hard  it  is  for  directors  sit- 
ting around  the  same  table,  mostly  personal  friends 
and  liable  to  desire  similar  favors,  to  refuse  loans 
to   each   other.     They   say : 

"  Generally  no  debts  are  of   such  long  continuance   and 

ID 


1^5  HISTORY    OF 

perpetual  renewal  as  the  debts  of  directors.  The  same 
pliant  facility  which  first  yielded  to  the  application,  per- 
mits the  debt  to  remain  unpaid  for  the  convenience  of  the 
debtor.  Thus  the  funds  of  the  bank  become  locked  up,  and 
often  to  the  disappointment  of  men  in  active  business,  who 
depend  upon  bank  accommodations.  In  times  of  pressure 
for  money  the  evil  is  increased,  for  directors  have  as  early 
notice  as  others  of  the  impending  danger,  and  make  sea- 
sonable provision  for  their  anticipated  wants." 

The  matter  rested  in  abeyance  till  1840,  when 
the   General   Assembly  enacted  that 

"The  directors  collectively  of  any  bank  in  this  State 
shall  not  be  indebted  to  such  bank  on  notes  and  bills  dis- 
counted at  such  bank  for  their  benefit,  or  for  the  benefit 
of  any  or  either  of  them,  to  an  amount  exceeding  one-third 
of  the  capital  stock  of  such  bank  actually  paid  in." 

The  continuance  of  liberality  betrays  indisposi- 
tion  to   meddle   with   the   subject. 

The  loans  by  the  Hartford  Bank  to  directors 
amounted  to  $19,334  Oct.  30,  1839;  to  $25,000  Jan. 
30,  1840,  and  to  $14,537.40  Feb.  10,  1841  ;  or  a  trifle 
over  one  and  one-half,  two,  and  one  per  cent,  of 
the  capital  at  the  respective  dates.  The  returns 
show  that  similar  conservatism  prevailed  throughout 
the  State,  there  being  but  two  flagrant  exceptions, 
both   of  which  paid  the   penalty  of  their  folly. 

The  board  emphasized  their  approval  of  a  cau- 
tious policy  still  more  strongly  November  8,  1839, 
when   it 

"Voted,  That  in  our  opinion  it  will  be  for  the  interest 
of  the  stockholders,  and   of  those  who  may  deal  with  this 


^'^  yi. 


/H^ 


THE    HARTFORD    BANK  jah 

bank,  that  the  president  for  the  time  being  abstain  from 
becoming  a  borrower  to  this  institution,  directly  or  indi- 
rectly, and  that  from  and  after  six  months  it  shall  be  con- 
sidered the  rule  of  the  bank." 

Mr.  Trumbull,  having  been  elected  to  the 
Twenty-sixth  Congress,  resigned  the  presidency,  and 
November  8,  1839,  David  F.  Robinson  was  chosen  to 
fill  the  vacancy.  Mr.  Robinson  was  born  at  Gran- 
ville, Mass.,  January,  1801,  was  early  left  an  orphan, 
and  while  still  a  lad  came  to  Hartford,  where, 
after  serving  as  clerk  in  the  store  of  Oliver  Wood- 
ford, he  learned  the  trade  of  bookbinding  in  the 
establishment  of  Silas  Andrus.  About  the  year  1825, 
the  firm  of  D.  F.  Robinson  &  Company  opened  the 
leading  book  store  of  the  city,  selling  by  agents  as 
well  as  over  the  counter.  They  also  engaged  in 
the  publishing  business  on  a  large  scale,  controlling 
among  other  works  the  school  books  prepared  by 
Jesse  Olney,  the  series  of  Dr.  J.  L.  Comstock,  a 
History  of  the  United  States  by  S.  G.  Goodrich,  and 
the  Cottage  Bible  edited  by  Dr.  William  Patton,  all 
of  which  had  a  great  run.  About  1835,  the  sales 
department  was  removed  to  New  York  City,  and 
thence,  under  the  name  of  Robinson,  Pratt  &  Co., 
orders  were  afterwards  supplied,  although  the  print- 
ing and  binding  were  still  done  in  Hartford.  Mr. 
Robinson  was  a  member  of  the  Common  Council  for 
nineteen  years,  during  a  period  when  the  seats  were 
filled  almost  exclusively  by  men  of  high  character 
and    wide    business    experience,    whose     possessions 


j^g  HISTORY    OP 

sharpened  to  keen  edge  their  solicitude  for  the 
welfare  of  the  city ;  was  elected  to  the  Legislature 
in  1846,  and  again  in  1854;  was  president  of  the 
Hartford  Bank  nearly  fourteen  years,  and  president 
of  the  Protection  Insurance  Company,  1837-40. 
After  a  useful  and  honored  life  he  died  January 
26,    1862. 

In  Hartford  the  earliest  conspicuous  develop- 
ment of  industrial  activity  was  directed  to  the 
manufacture  of  books,  the  business  passing  the 
zenith  before  the  middle  of  the  century.  Perhaps 
the  first  strong  impulse  was  given  by  the  success 
of  Webster's  Speller,  published  here  in  1783,  the 
income  from  the  sales  supporting  the  family  of  the 
author  during  the  twenty  years  he  was  engaged 
upon  his  dictionary.  Then,  too,  from  the  time 
when  the  "  Hartford  wits "  made  the  little  provin- 
cial town  famous,  it  has  been  the  home  of  many 
literary  workers.  In  the  production  of  educational 
and  subscription  books  the  city  took  the  lead  in 
the  United  States,  and  for  a  while  easily  held  it. 
Since  the  war  the  energies  of  the  place  have  been 
more  and  more  diverted  into  other  channels,  though 
several  enterprising  and  successful  houses  still 
remain   in   the  business. 

The  United  States  Bank,  chartered  by  the  Legis- 
lature of  Pennsylvania  in  February,  1836,  with  the 
view  of  succeeding  to  the  good  will  and  business  of 
its  namesake,  proved  a  thorn  in  the  flesh  to  New 
York  and  New   England.      It  suspended,  October  10, 


THE     HARTFORD     BANK  j^g 

1839,  after  a  desperate  and  dishonorable  attempt  to 
force  the  banks  of  New  York  to  take  similar  action. 
In  inability  to  redeem  its  notes  it  had  the  company 
of  the  other  banks  of  Philadelphia,  and  of  nearly 
all  at  the  South  and  West.  In  Pennsylvania  the 
suspension  lasted  till  January  15,  1841,  the  date 
fixed  by  law  for  resumption.  Perhaps  the  attempt 
at  compliance  would  have  been  successful  on  the 
part  of  the  rest  had  it  not  been  for  the  rottenness 
of  this  concern,  which,  having  suspended  twice 
before,  closed  its  disorderly  and  vexatious  career 
by  yielding  up  the  ghost,  January  15,  1841,  to  the 
peace  and  comfort  of  the  solid  institutions  north- 
ward. In  five  years  a  capital  of  thirty-five  millions, 
held  mostly  by  foreigners,  had  been  lost  and  stolen. 
Per  contra,  while  the  country  south  and  west  of  New 
York  was  convalescing  slowly  and  with  some  serious 
relapses  from  the  crash  of  1837,  the  Hartford  Bank 
paid  forty-one  per  cent,  in  dividends  in  the  five 
years  from  1838  to  1842,  inclusive,  held  its  surplus 
at  about  ninety  thousand  dollars,  and  took  good  care 
of  customers.  The  States  which  maintained  specie 
payments  after  May,  1838,  suffered  much  less  than 
the  others,  and  had  a  long  start  upon  the  road  to 
renewed   prosperity. 

Till  the  fall  of  1839,  Hartford  held  the  key  to 
the  trade  of  the  Connecticut  River  valley,  northward, 
nearly  or  quite  to  the  border  of  Canada.  Early  in 
the  century,  after  many  mistakes  and  delays  due 
to   inexperience   and  lack  of  funds,  canals  were  com- 


J  CO  HISTORY    OF 

pleted  around  the  falls  at  South  Hadley  and  at 
Montague.  By  these  helps  the  stream  became  nav- 
igable for  two  hundred  miles  above  the  city  for 
boats  of  fifteen  tons,  and  fifty  miles  further  for 
floats.  Besides  lumber  for  domestic  use  and  ex- 
port, surplus  agricultural  products  found  a  natural 
outlet  through  this  channel.  Among  the  statements 
made  to  the  directors  of  the  Second  United  States 
Bank  to  convince  them  that  Hartford  was  the 
proper  location  for  the  Connecticut  branch,  the  firm 
of  Porter  &  Holbrook  certified,  January  2,  1817,  that 
more  than  twenty-five  hundred  barrels  of  pot  and 
pearl  ashes,  valued  at  $85,000,  came  to  their  address 
from  Vermont  and  New  Hampshire  in  the  year 
1807.  Afterwards  the  outflow  was  diminished  by 
the  interruptions  of  commerce  during  the  Napo- 
leonic wars  and  the  war  of  18 12,  but  was  then  re- 
gaining its  former  volume.  Another  paper  of  the 
series  claimed  that  of  the  same  material  five  hun- 
dred barrels  a  year  were  often  shipped  hither  from 
the   single   town   of   Derby  on  the   Canada  line. 

Boats  returned  laden  with  rum,  molasses,  gro- 
ceries, and  other  supplies.  Here,  "  at  the  head  of 
sloop  navigation,"  the  exchanges  were  effected.  Our 
river  front,  crowded  with  craft  from  above  and  be- 
low, was  during  eight  months  of  the  year  a  cen- 
tral point  of  activity.  Droughts  had  less  effect  then 
than  now,  as  forests  by  retarding  evaporation  ren- 
dered the   flow   of  water  more   uniform. 

In  the   fall  of    1839,  the   railway  was   opened  to 


THE    HARTFORD    BANK  jcj 

Springfield  from  Boston,  when  our  merchants  were 
deserted  by  old  customers  in  Massachusetts,  Ver- 
mont, and  New  Hampshire  with  painful  sudden- 
ness. Thenceforth  inland  traffic  followed  the  loco- 
motive. 

Nor  was  this  all.  At  the  time  over  twenty  mail 
routes  radiated  from  the  city,  and  for  long  distances 
trade  moved  back  and  forth  along  the  thoroughfares. 
Daily  coaches  poured  upon  our  dealers  incessant 
streams  of  orders,  and  clerks  were  often  kept  busy 
far  into  the  night  packing  goods  to  be  forwarded 
by  return  stage.  Westward  our  merchants  sold  their 
wares  through  Litchfield  county  and  beyond  as  far 
as  Great  Barrington,  Mass.  Eastward  they  covered 
the  whole  of  Tolland  and  most  of  Windham  coun- 
ties. Twenty  taverns  offered  good  cheer  on  the 
first  twenty  miles  of  the  road  to  Albany.  If  less 
thick  on  other  turnpikes,  they  were  still  numerous 
enough  to  afford  wide  latitude  of  choice  to  hungry 
and  thirsty  travelers. 

In  1839,  too,  the  railway  from  New  Haven  to 
Hartford  was  opened.  The  link  between  Hartford 
and  Springfield  was  not  completed  till  December, 
1844.  About  the  year  1849  the  New  Haven  & 
Northampton,  the  Naugatuck,  and  the  New  Lon- 
don Northern,  running  north  and  south,  with  the 
east  and  west  lines  from  Hartford  to  Willimantic 
and  to  Bristol  were  opened  almost  simultaneously. 
One  by  one  the  delightful  old  stage-coaches  gave 
up  the  unequal  contest  and  passed  out  of  sight. 
Country    inns,    lately    bustling    centers    of    business 


JC2  HISTORY    OF 

and  pleasure,  were  deserted.  Through  a  change  of 
locomotion  one  of  the  most  picturesque  phases  of 
social  life,  stretching  back  to  remote  antiquity,  van- 
ished like  a  dream.  Each  of  the  new  roads  from 
the  Sound  northward  seemed  to  deal  a  fresh  blow 
to  the  trade   of   Hartford. 

A  complementary  movement,  now  pushed  for- 
ward with  extraordinary  vigor,  skill,  and  success, 
soon  raised  a  subordinate  interest  to  the  front  rank, 
and  gained  for  the  city  supremacy  in  insurance. 
The  attention  of  the  country  was  first  conspicuously 
attracted  to  her  method  of  meeting  obligations  in 
the  face  of  direful  calamities  in  December,  1835, 
when  the  officers  of  the  Hartford  Fire  Insurance 
Company  pledged  their  own  property  to  the  Hart- 
ford Bank  to  raise  funds  for  payment  in  full  of 
losses  exceeding  $60,000  from  the  fire  which  then 
desolated  New  York  City.  The  instant  annihilation 
of  cash  assets  left  only  the  indomitable  courage  of 
the  management  as  a  basis  for  subsequent  opera- 
tions. From  1835  to  1851,  $100,000  of  net  earnings 
were  indorsed  upon  the  stock-notes  given  by  share- 
holders, and   $135,000  paid   in   cash   dividends. 

In  1 84 1  the  capital  of  the  ^tna  Fire  Insurance 
Company  was  $200,000.  During  the  next  decade  it 
paid  $227,500  in  cash  and  $100,000  in  stock  divi- 
dends, or  an  average  of  over  sixteen  and  one-third 
per  cent,   per  year. 

With  these  examples  of  brilliant  success  thrust 
upon  the  community,  it  is  not  strange  that  insur- 
ance  absorbed    the   talent   and    forces    let    loose    by 


THE    HARTFORD    BANK  ^c-i 

the  contraction  of  trade.  The  City  Fire  Insurance 
Company  was  organized  in  1847,  the  Connecticut  in 
1850,  the  Phoenix  in  1854,  the  Charter  Oak  in  1856, 
and  the  Merchants  and  the  North  American  in 
1857.  The  Connecticut  Mutual  introduced  life  insur- 
ance in  1846  with  such  stimulating  effect  that  the 
Charter  Oak  followed  in  1850,  the  Phoenix  in  1851, 
and  the  ^tna  in  1853.  Thus  Hartford  successfully 
launched  ten  companies  in  eleven  years.  Although 
over  $12,000,000  were  taken  from  her  in  payment 
for  property  burned  at  Chicago  and  Boston  in 
1 87 1  and  1872,  and  all  but  four  of  her  fire  compa- 
nies were  engulphed,  the  interest  is  now  larger, 
stronger,  and  more  thoroughly  equipped  than  ever 
before. 

The  prosperity  of  our  older  banks,  followed  by 
the  exceptional  profits  of  underwriting  as  conducted 
here,  led  also  to  the  rapid  formation  of  new  banks, 
seven  having  been  added  to  the  local  list  between 
1849  and  1857,  each  of  which  still  enjoys  the  sup- 
port of  a  valuable  clientage.  Before  the  rebellion, 
Hartford  had  taken  position  as  a  leading  monetary 
center  of  the  United  States  —  a  position  firmly  held 
ever  since. 

While  a  formidable  array  of  competitors  was 
swarming  into  the  field,  the  course  of  the  Hartford 
Bank  continued  to  be  marked  by  uneventful  and 
monotonous  good  fortune.  In  1853,  Mr.  Robinson 
'resigned  the  presidency  to  join  in  forming  the 
private  banking-house  of  George  P.  Bissell  &  Co., 
in  which  he  became   a  silent  partner. 


1^4  HISTORY    OF 


CHAPTER    VIII 

THE   PAST   FORTY  YEARS 

JUNE  9,  1853,  Henry  Augustus  Perkins  was 
elected  president.  For  a  quarter  of  a  century, 
lacking  less  than  three  months,  he  had  held 
the  office  of  cashier,  and  during  the  entire  period, 
as  already  remarked,  had  never  been  absent  a  day 
on  account  of  sickness  or  for  rest.  From  the  be- 
ginning his  influence  had  been  so  pervasive  that 
his  promotion  brought  no   change   of  policy. 

Mr.  Perkins  was  a  pronounced  type  of  the  class 
of  men  whose  predominance  in  the  financial  institu- 
tions of  Hartford  has  won  for  them  the  unqualified 
confidence  of  the  country.  The  golden  rule  only 
requires  one  to  love  his  neighbor  as  himself,  and 
this  is  about  as  far  as  ordinary  people  find  it  con- 
venient to  go.  Not  a  few  of  our  managers,  how- 
ever, have  shown  an  economy,  a  disregard  of  per- 
sonal comfort,  an  assiduity  in  attention  to  details, 
while  building  up  the  corporations  entrusted  to 
their  care,  which  their  private  affairs  could  never 
have  extorted.  Men  liberal  with  their  own  funds 
have  pinched  and  sheared  to  save  the  funds  of 
their  companies.  The  assertion  might  be  proved 
by    a    great    variety    of    facts.      Before    the    day    of 


#:^^ 


.-;■  3  sid  II  s  So  n J.  -' '  'i ' 


THE    HARTFORD    BANK  jce 

envelopes  and  before  metropolitan  banks  provided 
blank  forms  for  drafts,  Mr.  Perkins  had  a  way  of 
drawing  checks  on  New  York  correspondents  upon 
the  margins  of  the  outer  sheets  of  letters  received, 
which  were  generally  free  from  writing  except  for 
the  direction  and  postmark.  During  early  years  of 
struggle,  corporations  which  now  count  their  assets 
by  millions  took  quarters  up  stairs  to  reduce  rent, 
tabooed  carpets,  and  used  kitchen  chairs.  Officers 
wrote  on  desks  bought  at  second-hand  shops,  ran 
as  errand  boys,  and  often  toiled  while  others  slept. 
Economy  and  honesty  in  corporate  management  are 
children  of  twin  birth,  and  upon  these  virtues 
largely  rests  the  phenomenal  development  of  the 
city  in  banking  and   insurance. 

October  12,  1853,  A.  G.  Hammond,  of  Greenfield, 
Mass.,  was  appointed  cashier.  He  resigned  in  May, 
1857,  to  accept  an  invitation  to  Chicago.  Returning 
after  a  short  absence  he  was  subsequently  elected 
president  of  the  Exchange  Bank,  and  held  the  place 
about  six  years. 

May  18,  1857,  George  Ripley,  also  of  Greenfield, 
was  appointed   cashier. 

Another  financial  panic,  short  but  destructive, 
swept  over  the  country  in  1857.  It  grew  out  of 
excessive  railway  building,  accompanied  by  undue 
expansion  of  the  currency.  During  1856  new  con- 
struction, mostly  at  the  West,  reached  3,642  miles. 
Banks  had  made  large  loans  on  collaterals  which 
declined  heavily  through   the   summer.      Confidence, 


je5  HISTORY    OF 

long  wavering,  snapped  with  the  collapse  of  the 
Ohio  Life  and  Trust  Company,  August  24th.  Many- 
failures  occurred  in  September,  the  banks  of  Phila- 
delphia, Baltimore,  and  of  the  interior  generally, 
suspending  before  the  middle  of  the  month.  Prices 
of  stocks  fell  with  a  rush.  Shops  were  closed  and 
thousands  were  thrown  out  of  work.  On  the  6th 
of  October  the  Exchange,  the  Mercantile,  and  the 
Charter  Oak  banks  of  this  city  stopped  specie  pay- 
ments. The  same  day  the  following  card,  signed 
by  the   six  presidents,  was   issued  to   the   public : 

"The  announcement  that  three  banks  in  Hartford  have 
this  day  suspended  specie  payments,  leads  the  six  other 
banks,  undersigned,  to  state  publicly  — 

"  I.  That  they  believe  themselves  fully  able  to  justify 
and  preserve  the  public  confidence  heretofore  reposed  in 
them,   and  to  that  end  — 

"  2.  They,  for  themselves,  deem  it  their  imperative  duty 
not  to  suspend  specie  payments." 

On  the  9th  of  October,  the  treasurer  of  the 
Illinois  Central  Railroad  Company,  which  had  com- 
pleted the  year  before  its  line  of  705.5  miles, 
mostly  through  a  new  country,  issued  a  circular 
announcing  its  inability  to  meet  pending  obliga- 
tions. The  banks  of  New  York  city,  after  a  reso- 
lute fight  against  the  inevitable,  were  obliged  to 
succumb  on  the  13th.  The  next  day  the  banks  of 
Hartford  (except  the  Connecticut  River),  and  of 
Boston,   followed. 

The    suspension  lasted  two    months.      Saturday, 


THE    HARTFORD    BANK  jr^ 

December  12th,  the  banks  of  New  York  city  de- 
cided to  resume  the  following  Monday.  Practically 
the  Hartford  banks  had  resumed  already,  but  so 
quietly  that  the   event  hardly   attracted   attention. 

Between  the  first  of  July  and  the  first  of  Jan- 
uary, the  circulation  of  the  banks  of  Connecticut 
was  reduced  from  $10,411,000  to  $4,130,265.  At 
the  above  dates  the  circulation  of  the  Hartford 
Bank  stood  $705,022.06  and  $248,727.06,  and  its 
specie  $76,427.08  and  $99,743.82,  respectively.  Almost 
every  piece  of  paper  it  held  at  the  outbreak  of 
the  storm  was  ultimately  paid.  Its  surplus  was  not 
impaired.  The  only  hardship  the  stockholders  were 
called  upon  to  bear  was  the  reduction  from  five  to 
four  per  cent,  in  the  dividend  for  December,  1857, 
the  regular  five  per  cent,  rate  having  been  restored 
the   following  June. 

April  23,  i860,  the  resignation  of  Geo.  Ripley 
was  accepted  to  take  effect  May  ist.  He  is  now 
president  of  the  Hide  and  Leather  Bank  of  Bos- 
ton. June  14th,  James  Bolter,  who  had  been  a 
director  since  1852,  and  was  thoroughly  acquainted 
with  the  affairs  of  the  institution,  was  appointed 
cashier  to   succeed   Mr.    Ripley. 

April  26th,  the  directors  voted  to  subscribe  for 
$50,000  of  treasury  notes  "of  the  issue  proposed 
by  the  United  States,"  thus  manifesting  in  the 
initial  stages  of  the  war  the  spirit  of  devotion  to 
the  cause  of  the  Union,  which  continued  to  ani- 
mate them  to   the   end. 


J  eg  HISTORY    OF 

June  13,  1865,  the  stockholders  voted  almost 
unanimously  to  change  from  the  State  to  the  Na- 
tional system.  The  necessary  steps  were  quickly 
taken,  and  the  institution  began  business  under 
the  name  of  "  The  Hartford  National  Bank"  on  the 
first  of  July  following.  The  capital  was  fixed  at 
$1,132,800,  with  the  privilege  reserved  of  increasing 
from  time  to  time  to  $3,000,000.  The  number  of 
directors  was  reduced  to  eleven,  the  State  of  Con- 
necticut and  charitable  institutions  being  deprived 
of  the  possible  representation  allowed  by  the  char- 
ter. The  date  for  annual  meetings  was  moved 
from   June   to   January. 

June  8,  1874,  the  board  of  directors  by  a  unan- 
imous vote  invited  President  Perkins,  in  view  of 
ill  health,  to  ''  take  a  recess  for  such  time  as  he 
may  desire,"  urging  that  for  at  least  three  months 
he  "relieve  himself  from  all  care  and  labor  con- 
nected with  his  official  position."  Long  and  unre- 
mitting attention  to  duty,  however,  had  left  little 
vitality  to  build  upon.  He  died  on  the  29th  of  the 
same  month. 

He  was  born  in  Hartford,  Oct.  2,  1801,  the  son 
of  Enoch  Perkins,  one  of  the  founders  of  the  bank, 
and  great-grandson  of  Deacon  Joseph  Perkins,  who, 
with  his  brother  Jabez,  having  migrated  from  Ips- 
wich, Mass.,  settled  in   Norwich  about    1695. 

Enough  has  been  said,  perhaps,  to  indicate  the 
salient  points  in  the  character  of  Mr.  Perkins.  He 
was  dominated  by  a  sense  of  justice,  honesty,  and 
right    to   a    degree    that    permitted    no    toleration    of 


THE     HARTFORD     BANK  j  eg 

fraud  or  sham.  With  him  impatience  of  wrong- 
doing easily  mounted  to  detestation.  Faithful  in 
the  performance  of  duty,  he  could  not  compre- 
hend, much  less  endure,  obliquity,  either  in  business 
or  personal  conduct.  In  short,  he  was  a  typical 
Puritan,  amply  endowed  with  the  rigid  and  rugged 
virtues  of  the  stock,  born  into  the  nineteenth  cen- 
tury instead  of  the  seventeenth.  Sound  judgment, 
added  to  stalwart  integrity,  caused  his  services  to 
be  widely  sought  for  the  settlement  of  estates  and 
the  administration   of   tinists. 

July  6,  1874,  James  Bolter  accepted  the  presi- 
dency, and  William  S.  Bridgman  was  elected  cashier. 
Mr.  Bridgman  had  held  the  post  of  assistant  cashier 
since  March  26,  1864.  July  8th,  Joseph  Breed  was 
elected  to  the  position  made  vacant  by  the  promo- 
tion  of   Mr.  Bridgman. 

Anxieties  caused  by  the  financial  cataclysm  of 
1873  undoubtedly  hastened  the  death  of  Mr.  Perkins. 
Early  in  the  crisis  the  management  of  the  institu- 
tion devolved  upon  Mr.  Bolter.  Intelligent  bankers, 
despite  delusive  appearances  of  prosperity,  foresaw 
the  tempest,  but  were  unable  to  avoid  its  ravages. 
In  modern  society  the  interdependence  of  interests 
is  so  close  that  in  great  convulsions  the  prudent 
must  suffer  in  a  measure  for  the  errors  and  follies 
of  the  imprudent. 

By  the  memorable  fires  of  1871  and  1872  at 
Chicago  and  Boston,  buildings  and  merchandise 
estimated  at  $27o,ooo,cxx>  were  swept  out  of  exist- 
ence.    The  processes  of  reconstruction  made  heavy 


i6o 


HISTORY    OF 


drafts  upon  the  resources  of  the  country.  Each 
successive  autumn  larger  sums  were  required  to 
move  the  crops  and  to  otherwise  meet  the  require- 
ments of  a  rapidly-growing  people,  but  an  inflexible, 
inconvertible,  depreciated  paper  currency  cut  off 
relief  from  the  coin  supplies  of  the  world.  In  1873, 
after  a  number  of  premonitory  disasters,  including 
the  failure  of  several  prominent  houses,  the  Canada 
Southern,  the  Northern  Pacific,  and  the  Chesapeake 
&  Ohio  railway  companies  suspended  on  the  17th, 
1 8th,  and  19th  of  September,  carrying  down,  among 
others,  Jay  Cooke  &  Co.  and  Fisk  &  Hatch.  By 
the  20th  the  panic  had  become  so  wild  and  uncon- 
trollable that  the  governing  committee  closed  the 
doors   of  the   New   York   Stock   Exchange. 

The  causes  were  many,  but  the  most  conspicu- 
ous was  the  inability  of  Europe  to  further  absorb 
American  railway  bonds,  which  had  been  thrown 
upon  the  market  for  new  construction  at  the  rate 
of  four  or  five  hundred  millions  a  year.  With  the 
stoppage  of  railway  building  kindred  industries  were 
paralyzed,  while  in  other  fields  of  effort  the  prog- 
ress of  incomplete  enterprises  was  largely  arrested. 
Above  and  behind  all,  the  time  had  now  come 
when  schemes  born  of  the  speculative  frenzy  that 
accompanied  and  followed  the  war,  were  put  to  a 
test  which  revealed  every  hidden  weakness.  As 
ridicule  of  conservative  management  had  become  a 
fashion,  ruin  suddenly  smote  the  host  of  promoters 
and  adventurers  who  had  long  seemed  to  dominate 
the  financial   situation. 


THE     HARTFORD     BANK 


l6l 


During  the  winter  of  1876-7,  owing,  in  part,  to 
the  uncertain  result  of  the  election  for  president, 
the  depression  was  more  disheartening  even  than 
at  any  previous  period  of  the  trouble.  Recovery 
proceeded  slowly.  Not  till  the  resumption  of  specie 
payments  January  i,  1879,  ^^^  prosperity  return. 
Meanwhile  in  the  ultimate  distribution  of  losses  an 
uncomfortable  share   fell  upon   the   banks. 

Still  the  stockholders  of  the  Hartford  Bank 
found  the  investment  a  refuge  in  time  of  trouble. 
During  the  six  years  from  1873  to  1878  inclusive,  it 
paid  68  per  cent,  in  dividends,  or  an  average  of 
11^  per  cent,  per  annum,  besides  making  a  sub- 
stantial addition  to  the  surplus.  The  following 
comparison  shows  its  progress  under  the  national 
system  between  1870  and  the  date  of  the  last  official 
statement.  It  should  be  remembered,  too,  that, 
latterly  rates  of  interest  have  been  unprecedentedly 
low,  though  the  downward  tendency  was  arrested 
temporarily  in  1890  by  British  losses  in  South 
America. 


Date. 

Capital. 

Surplus. 

Undivided 
Profits. 

Deposits. 

Circulation. 

Oct.    8,  1870, 
Mch.  I,  1892, 

$1,132,800 
1,200,000 

$500,636.55 
600,000.00 

$55,631.75 
168,740.77 

$522,570.77 
2.393.819-21 

I389.513 
42,220 

One  of  the  first  acts  of  the  new  president  was 
to  take  steps  to  modernize  the  bank  building.  In 
1875  the  floor  was  lowered  and  the   interior  finished 


J  52  HISTORY    OF 

in  solid  mahogany  by  Herter  Brothers  of  New 
York  City.  The  lobby  is  paved  with  tiling. 
Dark  and  stormy  days  the  blaze  of  a  wood  fire  on 
the  open  hearth  suggests  comfort  and  hospitality. 
A  strong  and  commodious  vault  opens  into  the 
passage  behind  the  counter.  In  the  rear  is  the 
directors'  room,  adorned  with  the  portraits  of  all  the 
presidents.  The  outer  walls  are  of  great  thickness, 
as  if  intended  by  the  early  builders  to  harmonize 
with  the  general  solidity  of  the  institution.  The 
second  story  behind  the  dome  is  used  for  the 
storage   of  books,   papers,   and   other  belongings. 

May  2,  1882,  the  stockholders  voted  to  increase 
the  capital  stock  from  $1,132,800  to  $1,200,000  by 
the  addition  of  six  hundred  and  seventy-two  shares 
of  one  hundred  dollars  each;  and  the  directors 
were  authorized  to  dispose  of  the  same  by  sale  or 
subscriptions  to  the  highest  bidder  in  such  manner 
as  they  might  think  best.  May  23d  the  entire  lot 
was  awarded  to  a  single  purchaser,  173  shares  at  a 
premium  of  $75.62^  each,  and  the  remaining  499 
shares  at  a  premium   of  $75.12^. 

Early  dividends  were  scant,  three  and  one-half 
per  cent,  having  been  paid  in  1793,  three  per  cent, 
in  1794,  and  none  the  two  following  years.  From 
1797  they  were  declared  once  a  year,  at  the  rate 
of  three,  three  and  one-half,  and  four  per  cent., 
till  1802,  and  thenceforward  semi-annually  without 
a  break,  except  in  December,  1828,  and  through 
1829.      The    small    returns    at    first    were    probably 


THE    HARTFORD    BANK  j^^ 

due  to  slowness  and  difficulty  in  converting  the 
notes  given  by  subscribers  to  the  stock  into  cash, 
as  money  was  very  scarce.  Till  the  end  of  1815 
it  was  the  custom  to  divide  up  all  the  profits  in 
June  and  December,  the  two  dividends  for  that 
year  having  been  $12.63  ^^^  $14-87,  respectively, 
per  share  of  $400.  Between  1838  and  1852  eleven 
extra  dividends  were  distributed.  During  the  sixty- 
two  years  from  1830  to  December,  1891,  five  hundred 
and  seventy-eight  and  one-half  per  cent,  have  been 
paid  in  one  hundred  and  thirty-five  dividends,  or 
an  average  of  nine  and  one-third  per  cent,  per 
annum. 

In  the  Appendix  will  be  found  a  complete  list 
of  the  directors,  —  long,  because  under  the  provisions 
of  the  charter  not  over  three-fourths,  exclusive  of 
the  president,  were  eligible  "  the  next  succeeding 
year."  The  original  purpose  to  give  brief  sketches 
of  the  most  prominent  was  abandoned,  after  passing 
the  founders,  from  richness  of  material,  as  otherwise 
this  volume  might  have  grown  to  encyclopedic  size. 
Many  of  them  were  eminent  for  usefulness  in  both 
public  and  private  walks.  In  countless  ways  their 
good  deeds  survive  to  bless  succeeding  generations. 

With  the  hundredth  anniversary  Mr.  Bolter 
rounds  forty  years  of  continuous  service  with  the 
bank  as  director,  cashier,  and  president,  having 
been  first  elected  to  the  board  June  10,  1852. 
He  was  born  at  Northampton,  Mass.,  June  27,  181 5; 
came    to    Hartford    to    reside    in     1832;    and    from 


J  54  HISTORY    OF 

1843  till  his  acceptance  of  the  cashiership  in 
i860,  was  a  partner  in  the  mercantile  house  of 
C.   H.   Northam   «&   Co. 

Except  for  the  admonition  to  pass  in  silence 
the  services  of  the  living,  the  writer  would  attempt 
to  voice,  however  imperfectly,  the  esteem  of  fellow 
bankers  and  of  the  community  for  Mr.  Bolter. 
He  would  direct  attention  to  the  remarkable 
insight  into  the  real  condition  of  borrowers  that 
has  caused  his  advice  to  be  widely  sought  by  buyers 
of  paper.  He  would  recall  acts  of  timely  aid 
judiciously  rendered  to  the  struggling;  of  duties  of 
citizenship  fearlessly  performed,  not  to  gain  applause, 
but  to  protect  public  interests ;  of  the  courage  shown 
on  occasion  in  the  rebuke  of  wrong ;  and,  not  least, 
of  the  perennial  cheerfulness  and  vivacity,  of  the 
wealth  of  wit  and  anecdote,  that  win  welcome  every- 
'  where.  If  permitted,  he  would  embalm  some  of 
the  repartees  —  of  the  happy  hits  exposing  the  core 
of  situations  by  a  phrase  —  that  have  had  almost  as 
wide  a  currency  as  the  bills  of  the  bank.  But  such 
suggestions  are  met  by  him  with  an  imperative 
"  No." 

From  the  exceptional  ability  and  force  of  the 
founders,  the  Hartford  Bank  gave  a  distinctively 
financial  trend  to  the  subsequent  development  of 
the  town.  In  its  bosom,  as  has  been  shown,  began 
the  practise  of  fire  and  marine  insurance,  long 
before  the  first  local  company  was  chartered. 
Under  its  wings  was  gathered  the   early  experience 


THE    HARTFORD     BANK  ^5^ 

destined,  in  time,  to  make  the  city  pre-eminent  for 
skill  and  success  in  underwriting.  Started  soon 
after  the  formation  of  the  federal  government,  amid 
general  poverty,  the  country  having  made  little 
progress  toward  recovery  from  the  ravages  and 
waste  of  the  Revolution,  the  bank  furnished  the 
funds  that  held  for  the  town,  till  the  advent  of  rail- 
ways, the  lucrative  trade  of  the  Connecticut  valley 
far  up  toward  the  sources  of  the  stream.  Such  was 
the  prominence  of  its  managers,  not  merely  in  com- 
merce, but  in  the  professions,  in  politics,  and  even 
in  literature,  that  the  popular  imagination  ascribed 
a  sort  of  magical  potency  to  the  art.  Hence,  as  the 
community  grew  in  wealth,  other  banks  were  rapidly 
organized,  far  beyond  local  needs,  till  the  city 
became  a  center  for  supplying  money  to  the  whole 
country. 

We  have  now  nine  National  and  eight  State 
banks  of  discount  and  trust  companies,  with  a 
total  capital  of  $7,975,000,  reinforced  by  surplus  and 
undivided  profits  amounting,  in  January,  1892,  to  $3,- 
514,320.57,  and  holding  deposits  reaching  $17,277,- 
705.07.  At  the  same  date,  the  assets  of  our  four 
savings  banks  reached  $21,527,768.87;  of  eight  fire 
insurance  companies,  $31,620,007.67  ;  of  eight  life 
insurance  companies,  $125,060,733.87;  of  the  Steam 
Boiler  Inspection  and  Insurance  Company,  $1,556,- 
435.12,  making  a  total  of  $208,531,971.19,  owned  and 
held  in  trust,  January,  1892,  by  the  banking  and 
insurance  interests  of  Hartford. 


1 56  HISTORY    OP    THE    HARTFORD    BANK 

While  the  finite  mind  is  incapable  of  tracing 
streams  of  influence  along  their  hidden  and  multi- 
tudinous courses,  enough  is  clear  to  show  the 
exceeding  fruitfulness  of  the  seed  planted  one 
hundred  years  ago  by  the  fathers  of  this  institu- 
tion. 

The  bank  has  lent  cheerful  aid  in  upbuilding 
the  industrial  interests,  which,  though  still  in  the 
formative  stage,  have  already  made  Hartford  famous 
for  excellence  of  mechanical  work,  not  only  in 
America,  but  in  Great  Britain,  Germany,  France, 
and  wherever  civilization  is  sufi&ciently  advanced  to 
demand  the  best.  About  one-third  of  the  inhabit- 
ants of  the  town  draw  their  support  directly  from 
manufactures,  mostly  of  the   highest  grade. 

The  limited  and  imperfect  outline  presented 
in  the  foregoing  pages  gives  certain  glimpses  of 
what  an  institution  under  typical  New  England 
management  has  accomplished  for  the  owners 
and  the  public  during  the  first  century  of  its  life. 
If  the  future  may  be  measured  by  the  past,  the 
imagination  is  both  dazzled  and  dazed  in  attempt- 
ing to  conjecture  what  new  and  strange,  and  at 
present  inconceivable,  materials  will  lie  around  the 
writer  who  shall  continue  the  story  to  the  year 
nineteen  hundred  and  ninety-two. 


APPENDIX 

LIST   OF  THE   EXECUTIVE    OFFICERS    AND    DIRECTORS 
OF  THE  HARTFORD  BANK 


John  Caldwell 
Nathaniel  Terry 
Joseph  Trumbull 
David  F.  Robinson 
Henry  A.  Perkins 
James  Bolter 


PRESIDENTS 

June  i6,  1792 

June   10,  1819 

June   12,  1828 

Nov.     8,  1839 

June     9,  1853 

July      6,  1874 


June  10,  1819 

June  12,  1828 

Nov.  8,  1839 

June  9,  1853 

June  29,  1874 


Hezekiah  Merrill 
Normand  Knox 
Horace  Burr 
Henry  A.  Perkins 
A.  G.  Hammond 
George  Ripley 
James  Bolter 
Wm.  S.  Bridgman 


CASHIERS 

June  16,  1792 

June  18,  1799 

July    22,  1814 

July    26,  1828 

Oct.    12,  1853 

June     I,  1857 

June   14,  i860 

July      6,  1874 


June  17,  1799 

July  22,  1814 

July  26,  1828 

June  9,  1853 

June  I,  1857 

May  I,  i860 

July  6,  1874 


Wm.  S.  Bridgman 
Joseph  Breed 
Wm.  S.  Andrews 


ASSISTANT   CASHIERS 

Mar.  26,  1864 
July  8,  1874 
Sept.  14,  1891 


July     6,  1874 
Aug.  29,  1888 


(167) 


i68 


APPENDIX 


LIST    OF    DIRECTORS    OF    THE    HARTFORD    NATIONAL 
BANK    FROM    1792    TO    1892 


Jeremiah  Wadsworth  1792- 

JoHN  Caldwell  1792-18 18 

John  Morgan  1792-18 15 

George  Phillips  i  792-1 793 

Barnabas  Deane  i 792-1 794 

Timothy  Burr  i  792-1 795 

James  Watson  1792- 

Caleb  Bull  i  792-1 796 

Ephraim  Root  1792-1814 

Oliver  Phelps  i  793-1795 

George  Goodwin  1794-18 17 

Oliver  Ellsworth  i  794-1 796 

Peleg  Sanford  1 793-1 797 

Daniel  Wadsworth  i  795-1 799 

E.  Morgan  i  796-1 797 

William  Moseley  1797-18 15 

Thomas  Bull  i  797-1 806 

EzEKiEL  Williams,  Jr.  1797-1807 

A,  Olmstead  1798-1802 

Nathaniel  Patten  1798- 

Benjamin  Bigelow  1 799-1 805 

Samuel  Gilbert  i  800-1 803 

Joseph  P.  Cook  1801-1804 

Dan  Pitkin  1802- 

Samuel  Richards  1804- 

Nathaniel  Terry  1805-1827 

Julius  Deming  1806-1820 

Andrew  Kingsbury  1806-1822 

Benjamin  Tallmadge  1807- 

Elijah  Cowles  1808-18 16 

Thaddeus  Leavitt  1809-1812 

Joseph  Bulkley  1809-1815 


Ira  Hooker  1810- 
Chauncey  Deming  1810-1824 
Solomon  Cowles  i Six- 
Martin  Ellsworth  1813-1821 
Jonathan  Cowles  i 814-1822 
David  Watkinson  181 5-1839 
James  H.  Wells  1816-1827 
James  Ward  1816-1829 
Henry  L.  Ellsworth  1816-1819 
William  H.  Imlay  181 7-1 81 8 
Eliphalet  Terry  18 17-1828 
Henry  Hudson  1817-1823 
Isaac  Spencer,  2d  1818- 
Gad  Cowles  1818-1826 
Spencer  Whiting  1819-1822 
Joseph  Trumbull  1820-1852 
Wm,  W.  Ellsworth  1820-1828 
Nathan  Morgan  1823-1836 
Amos  M.  Collins  1823-1841 
Harmon  Hendricks  1823-1830 
James  B.  Hosmer  i 824-1863 
Henry  Kilbourn  1824- 
Chas.  S.  Phelps  1825- 
James  Cowles  1826-1857 
Timothy  Cowles  1827-1840 
Robert  Watkinson  1827-1836 
Charles  Goodwin  1829-1835 
Roderick  Terry  18  29-1 8  34 
Daniel  P.  Hopkins  1830-1834 
Samuel  Deming  1830-1864 
Barzillai  Hudson  1831-1864 
M,  W.  Chapin  1831-1837 


APPENDIX 


169 


Hez.  Huntington,  Jr.  1831-1834 

Richard  Bigelow  i  832-1 834 

Thos.  S.  Williams  1834-1835 

E.  B.  Stedman  1835- 

David  F.  Robinson  1835-1854 

Erastus  Ellsworth  18  36-1 847 

Hezekiah  B.  Chaffee  1836-1847 

Francis  Parsons  1837-1849 

Charles  Sheldon  1837-1845 

Chas.  H.  Brainard  1837-1862 

RoswELL  Brown  1838-1854 

Chas.  H.  Northam  1838-1848 

Ezra  White,  Jr.  1841-1845 

Edmund  G.  Howe  i 842-1851 

Ezra  S.  Hamilton  1842-1848 

James  M.  Bunce  1846-1850 

Robert  Buell  1846-1882 

Calvin  Day  i  847-1 884 

John  Olmsted  1847- 

Newton  Case  1848-1852 

Loyal  Wilcox  1849-1864 

Albert  W.  Butler  1849-1857 

Flavius  a.  Brown  i 849-1 863 

Benjamin  W.  Greene  1851- 


Ira  Peck  185 i- 

RussELL  G.  Talcott  1851-1862 

*  Roland  Mather  1852- 

*  James  Bolter  1852- 
Henry  a.  Perkins  1853-1874 
Gideon  Welles  1855-1860 
Marshall  Jewell  1856-1883 
Francis  W.  Cowles  1859- 
Elijah  H.  Owen  1859-1881 

*  George  S.  Lincoln  1860- 

*  Drayton  Hillyer  1861- 
John  E,  Cowles  1862- 
Francis  B.  Cooley  1864-1872 

*  Henry  C.  Judd  1865- 
George  B.  Barnes  1865-1876 

*  Ebenezer  Roberts  1870- 
Frank  W.  Cheney  1873-1877 
Zeno  K.  Pease  i  876-1 890 
Henry  Kellogg  1878-1891 

*  Geo.  Wells  Root  1881- 

*  Pliny  Jewell  1883- 

*  William  H.  Post  1885- 

*  Ralph  H.  Ensign  1891- 

*  D.  W.  C.  Skilton  1891- 


*  Present  Directors 


170 


APPENDIX 


ALPHABETICAL   LIST   OF  THE   FIRST   SUBSCRIBERS   TO 
THE   HARTFORD  BANK,  250  SHARES  OF  $400  EACH 

Benjamin,  Everard 

BoLLES,  John 

BiGELOw,  Benjamin 

Bull,  Caleb 

Bull,  David 

Bull,  George 

Bull,  Hezekiah 

Bull,  Isaac 

Bull,  James 

Bull,  Joseph 

Bull,  Michael  &  Thomas 

Butler,  N. 

Burr,  James 

Burr,  Joseph 

Burr,  Timothy 

Caldwell,  John 

Caldwell,  John  &  Co, 

Chenevard,  John 

Colt,  Elisha 

Dean,  Barnabas  &  Co. 

Ellsworth,  Oliver 

Goodrich,  Chauncey 

Goodwin,  David 

Hall,  John 

Hopkins,  Charles 

Hubbard,  Nehemiah 

Hudson  &  Goodwin 

Ingraham,  N.  G. 

Jones,  Daniel 

Keyes,  Amasa 

Kilbourn,  Freeman 

KiLBOURN,  Samuel 

Lawrence,  Samuel 

Leddie,  Samuel 


2 

Lyndes,  Joseph 

I 

2 

Merrills,  George 

2 

4 

Merrill,  Hezekiah 

10 

I 

Morgan,  Elias 

2 

4 

Morgan,  John 

6 

2 

Moseley,  William 

4 

3 

Ogden,  Jacob 

3 

I 

Olcott,  Daniel 

3 

2 

Patten,  Nathaniel 

2 

I 

Perkins,  Enoch 

3 

8 

Phelps,  Oliver 

15 

6 

Phillips,  George  and  T. 

10 

4 

Pitkin,  Daniel 

I 

I 

Pratt,  Joseph 

2 

6 

Root,  Ephraim 

6 

8 

Root,  Jesse,  Jr. 

4 

6 

Sanford,  p. 

6 

2 

Smith,  Reuben  &   Co. 

8 

5 

Thomas,  John 

I 

10 

Tisdall,  Thomas 

2 

10 

Trumbull,  John 

2 

2 

Wadsworth,  Catherine 

4 

Wadsworth,  Daniel 

I 

Wadsworth,  Decius 

4 

Wadsworth,  Elizabeth 

5 

Wadsworth,  Eunice 

4 

Wadsworth,  Harriet 

I 

Wadsworth,  J  ere. 

2 

Watson,  James 

10 

I 

Wells,  Ashbel,  Jr. 

2 

2 

Wells,  James  A. 

10 

2 

Wells,  Lucy 

I 

3 

Williams,  Ezekiel,  Jr. 

3 

I 

Wyles,  John 

I 

PRESENT    OFFICERS    AND    EMPLOYES 


JAMES  BOLTER      . 
W.  S.  BRIDGMAN   . 
W.  S.  ANDREWS     . 
M.  H.  BRIDGMAN 
N.  B.  GILBERT 
W.  H.  GILBERT       . 
F.  A.  SEARLE 
H.  C.  NEY     . 
D.  W.  KNOX 
JOHN   F.  RODNEY 


President 

Cashier 

AssT.  Cashier 

Teller 

Discount  Clerk 

Book-keeper 

AssT.  Book-keeper 

Corresponding  Clerk 

Messenger 

Porter 


(171) 


INDEX 


Adams,  John,  27,  41,  43,  72,  104. 
^tna  Fire  Insurance  Co.,  152. 
Alden,  Horatio,  14a 
Ante-Revolutionary  Prosperity,  10. 

Baldwin,  Simeon,  97. 

Bank  of  New  York,  10,  31. 

Bank  of  Massachusetts,  10. 

Bank  of  North  America,  10,  31,  59,  60. 

Bank  of  the  United  States,  the  first,  23, 

33>  Ill- 
Bank  of  the  United  States,  the  second, 

121,  128,  150. 
Bank  of  the  United  States,  the  third, 

148  ;  its  collapse,  149. 
Barter,  evils  of,  14. 
Beach,  George,  91. 
Beers,  Seth  P.,  138. 
Bishop's  Fund,  100,  loi,  103, 104. 
Bolter,    James,    elected   cashier,    157 ; 

elected  president,  159,  163. 
Boston  Alliance,  the,  13a 
Breed,  Joseph,  159. 
Bridgman,  W.  S.,  159. 
Brown,  Jeremiah,  138. 
Burr,  Horace,   appointed  cashier,  m, 

131.  132.  133- 
Burr,  James,  sketch  of,  52,  iiS. 
Burr,  Timothy,  20  ;  sketch  of,  38,  71. 
Bull,  Caleb,  20 ;  sketch  of,  39. 
Bull,  Michael  and  Thomas,  91. 

Caldwell,  John,  15,  19,  20 ;  sketch  of, 
34>  S2i  S3.  60,  71,  75,  82,  8s,  90,  91,  97, 
loi,  117  ;  resignation  of,  124. 

Calhoun,  John  C,  on  Oliver  Ellsworth, 
42- 

Capital,  increase  of,  75,  84,  162. 

Charter,  from  Charles  II,  the,  29,  6g, 
72 ;  provisions  of,  106,  109. 

Chenevard,  John,  sketch  of,  53,  60,  91. 

Christ  Church,  subscription  for  build- 
ing. 59- 


Church,  John  B.,  32. 

Clergy  supported  by  taxation,  30,  107. 

Cleveland,  C.  F.,  140. 

Clinton,  George,  Gov.,  13. 

Cold  summer  of  1816,  120. 

Colt,  Elisha,  sketch  of,  53. 

Congregational  Church,  established 
by  law,  107  ;  modifications  of  the 
law,  108. 

Connecticut,  first  bank  discount,  64 ; 
issues  indents  for  interest,  66;  in- 
vests in  stock  of  Hartford  Bank, 
81  ;  business  depression  in  1819,  123  ; 
bank  failures  in,  129;  forbids  surplus 
over  5  per  cent,  and  small  notes,  137; 
establishes  bank  commission,  140. 

Connecticut  Land  Company,  71. 

Constitution  of  1638-9,  105. 

Constitution  of  1818,  evils  of  previous 
system,  109  ;  provisions  of,  no;  in- 
dustrial effects.  III. 

Continental  money,  1 1 ;  funding  of,  22, 
65,66. 

Counterfeiting,  77,  it6,  117. 

Courant,  Connecticut;  The,  13,  14,  20 
its  early  power,  46  ;  loi,  104,  118. 

Crisis,  financial,  of  1819,  122  ;  slow  re- 
covery from,  126 ;  of  1825,  129  ;  of 
1837,  141 ;  of  i8s7,  155 ;  of  1873,  159. 


Dartmouth  College,  34. 

Day,  Calvin,  142. 

Deane,  Barnabas,  15,  19  ;  sketch  of,  37  ; 

60. 
Deane,  Silas,  37. 
Derby  Bank,  failure  of,  130. 
Directors,  discounts  to,  145,  163. 
Dividends,  risumi  of,  162. 
Doolittle,  Enos,  bell  foundry,  27. 
Dwight,  Timothy,  39. 

Eagle  Bank,  failure  of,  129. 


174 


INDEX 


Ellsworth,   Oliver,   19 ;    sketch  of,   40, 

52,  61,  97. 
Embargo  of  1807,  95,  113. 
Engraving  of  first  steel  plates,  68. 

"Facilities,"  116. 

Field,  William,  138. 

Fire  lands,  69. 

Fires  at  Chicago,  Boston,  159. 

Fractional  currency  in  1802,  prohibited 

by  the  State,  88,  116  ;  signing  of,  118  ; 

again  in  1816,  prohibited,  iig. 

Goodrich,    Chauncey,    15,    17 ;   sketch 

of,  44. 
Goodwin,  Charles,  118. 
Goodwin,  George,  sketch  of,  46,  85,  loi. 
Greene,  Nathaniel,  Gen'l,  37,  47. 

Hamilton,  Alexander,  17;  financial 
measures  of,  22  ;  success  of  these,  24  ; 
31.  44.  47.  104. 

Hammond,  A.  G.,  155. 

Hartford  in  1792,  24  ;  size  and  popula- 
tion, 24 ;  streets,  24 ;  noted  land- 
marks, 25  ;  trade  and  commerce,  26  ; 
value  of  the  river,  26 ;  manufac- 
tures, 26 ;  mail  service,  27  ;  wealth 
and  taxation,  28 ;  the  "  Hartford 
wits,"  29,  148  ;  first  sidewalks,  77  ; 
fire  wardens,  78  ;  pasturage  of 
streets,  78  ;  change  from  farm  to 
town,  78 ;  entrepot  for  Connecticut 
valley,  79,  150 ;  prosperity  promoted 
by  the  bank,  80 ;  West  India,  trade 
of,  91  ;  book-manufacture,  148  ;  cor- 
porate accumulations,  165 ;  manu- 
factures, 166. 

Hartford  Bank,  the,  9,  10,  13,  14 ;  arti- 
cles of  association,  15  ;  stock  sub- 
scribed, 16 ;  petition  of  agents  to 
legislature,  16 ;  the  charter,  17 ;  or- 
ganization, June  14,  1792,  19 ;  elec- 
tion of  officers,  20 ;  denomination 
of  notes,  20 ;  first  rules,  21 ;  opens 
for  business,  22  ;  early  quarters,  57  ; 
the  vault  and  safe,  57  ;  motley  cur- 
rency, 59 ;  introduces  the  decimal 
system  in  Connecticut,  61 ;  esoteric 
rules,  63  ;  bills  win  confidence  slow- 
ly. 65  ;  but  surely,  67  ;  charter  basis 
of  circulation,  68  ;  engraved  plates, 
68 ;  prominence  of  stockholders  in 


purchase  and  subsequent  handling 
of  the  "Western  Reserve  "  71  ;  char- 
ter limitations  on  ownership,  and 
voting  privileges  removed,  75;  enfor- 
ces punctuality,  76;  early  benefits  to 
community,  80 ;  receives  the  State 
as  a  stockholder,  82  ;  also  religious 
societies  and  school  corporations, 
85  ;  injustice  of  the  conditions,  87  ; 
lengthens  terms  of  discount ;  grows 
more  exacting,  88  ;  contributes  to- 
ward purchase  of  fire  engine,  89  ; 
part  in  early  underwriting,  fire 
and  marine,  89  ;  connection  with  the 
Hartford  Fire  Insurance  Company, 
94  ;  with  turnpikes,  96 ;  moves  into 
its  present  quarters,  98  ;  position  in 
1814  ;  resists  application  for  a  rival 
bank,  loi ;  momentous  results  of 
the  controversy,  103  ;  in  July,  1815, 
joins  in  attempt  to  make  New  York 
banks  resume  specie  payments,  117  ; 
a  reactionary  step,  119  ;  par  of  shares 
reduced  to  |ioo,  119;  extraordinary 
influence  of,  during  the  first  quarter 
of  a  century,  124  ;  adopts  more  strin- 
gent rules,  125  ;  Gen.  Nath'l  Terry 
president,  125  ;  the  city  watch,  127  ; 
employes  must  not  trade  or  specu- 
late, 128  ;  courtesies  to  United  States 
branch  bank,  128  ;  in  1828,  suspends 
dividends,  130 ;  Joseph  Trumbull, 
president,  the  Hinsdale  defalca- 
tion, 132  ;  elects  Henry  A.  Perkins 
cashier,  133  ;  statements  for  1827  and 
1829, 134  ;  dividends  resumed  in  1830; 
surplus  in  1835,  137  ;  resists  State 
supervision,  138  ;  in  the  crisis  of 
1837,  142,  149  ;  smallness  of  loans  to 
directors,  146  ;  presidents  must  not 
borrow  from  bank,  146  ;  D.  F.  Rob- 
inson elected  president,  147 ;  rail- 
way construction  and  its  effects,  151; 
rapid  expansion  of  insurance  and 
banking  interests,  153  ;  H.  A.  Per- 
kins, president,  154;  A.  G.  Hammond 
and  George  Ripley  cashiers,  155  ; 
in  the  panic  of  1857,  155-7  >  James 
Bolter,  cashier,  157  ;  subscription  to 
United  States  loans,  157  ;  change  to 
National  system,  158  ;  death  of  Mr. 
Perkins,  158  ;  James  Bolter,  presi- 
dent, 159  ;  progress  under  the  Na- 
tional  system,   161  ;   renovation   of 


INDEX 


175 


banking-house,  162  ;  increase  of  cap- 
ital, 162  ;  rSsumi  of  dividends,  162 
directors,  163 ;  President  Bolter,  163 
broad    influence  of  the  bank,   164 
relations  to  manufactures,  166. 

Hartford  Fire  Insurance  Company,  94, 

126,  152. 
Hartford  Woolen  Manufactory,  the,  26. 
Hillhouse,  James,  97. 
Hinsdale,  Daniel,  defalcation  of,  132. 
Hoadly  &  Chalker,  store  of,  robbed,  58. 
Hoadly,  Charles  J.,  58,  59. 
Hopkins,  Charles,  sketch  of,  54. 
Hosmer,  James  B.,  139. 
Hubbapd,  Nehemiah,  sketch  of,  47,  71. 
Hudson  &  Goodwin,  25;  sketches  of,  46, 

62,  91,  97. 
Hudson,  Barzillai,  46. 

Imlay,  William,  89. 

Indents  for  interest,  66. 

Ingersoll,  Jonathan,  104,  105. 

Inns,  disappearance  of,  151. 

Insurance,  89 ;  fire,  89  ;  marine,  90  ;  pre- 
miums, 90  ;  rapid  organization  of 
companies  after  1846,  153. 

Jackson,  Andrew,  142. 
Jefferson,  Thomas,  44,  61,  81,  113. 

Keyes,  Amasa,  sketch  of,  52. 
Kingsbury,  Andrew,  65,  loi. 
Knox,  Normand,  elected   cashier,   77, 
91  ;  resignation  of,  m. 

Law,  John,  11. 
Lawrence,  Samuel,  91. 

Madison,  James,  114. 

Mail  service  in  1792,  27  ;  in  1839,  151. 

Manufactures,  26,  79,  166. 

Mather,  Oliver,  97. 

Merrill,  Hezekiah,  elected  cashier,  20, 

75  ;  resignation,  76. 
Middletown  Bank,  the,  82. 
Mint,  the,  establishment  of,  23. 
Morgan,  Ellas,  36,  71. 
Morgan,  John,  15,  19,  34  ;  sketch  of,  35, 

60,  71,  82,  90,  91,  97,  loi,  117. 
Morgan,  Junius  S.,  36. 
Morris,  Govemeur,  61. 
Morris,  Robert,  31. 
Mosely,  William,  75. 


New  Haven  Bank,  82. 
Newspaper,  early,  the,  14. 
Niles's  Weekly  Register,  122. 
Norwich  Bank,  the,  82. 

Ogden,  Jacob,  sketch  of,  51,  60. 
Olmstead,  Aaron,  97. 

Palmer,  John  C,  140. 

Parsons,  Francis,  137. 

Parsons,  John  C,  137. 

Patten,  Nathaniel,  94. 

Penn,  William,  grant  to,  69. 

Perkins,  Enoch,  sketch  of,  45,  71,  78. 

Perkins,  Henry  A.,  elected  cashier, 
133  ;  his  character,  133  ;  anecdotes 
of  13S1  136,  144 ;  elected  president, 
154;  death,  158. 

Phelps,  Oliver,  sketch  of,  47,  71. 

Phillips,  George,  19  ;  sketch  of,  36,  50. 

Phoenix  Bank,  93,  103. 

Pierce  &  Beach,  91,  93. 

Pierce,  George  and  John,  91. 

Police,  beginnings  of,  127. 

Porter  &  Holbrook,  150. 

Post-notes  authorized,  96,  115  ;  forbid- 
den, 116. 

Post-revolutionary  poverty  and  per- 
ils, 12. 

Providence  Bank,  the,  10. 

Putnam,  George,  140. 

Raguet,  Condy,  112. 

Railway  construction  in  1849,  and  re- 
sults to  the  city,  151. 

Reed,  Abner,  68. 

Ripley,  George,  155,  157. 

Robinson,  David  P.,  elected  president, 
147  ;  sketch  of,  147  ;  resignation,  153. 

Root,  Ephraim,  20;  sketch  of,  40,  71,  82. 

Root,  Erastus,  on  decimal  notation  in 
1795,  62. 

Rules  of  the  bank,  exoteric,  21  ;  esot- 
eric, 64  ;  more  stringent,  125. 

Sanford,  Peleg,  sketch  of,  50,  55,  71. 
Sanford,  Thomas,  96. 
Sanford  &  Wadsworth,  89,  9a 
Saybrook  platform,  the,  107. 
Seymour,  Thomas  Y.,  78. 
Shipman,  Elias,  90. 
Slavery  in  Connecticut,  29. 
Smith,  Normand,  79. 


176 


INDEX 


Stage  coaches,  disappearance  of,  151. 
Stand-up  law,  the,  109. 
Steele's,  J.  &  G.,  foundry,  27. 
Sterry,  John  &  Consider,  on  decimal 

system,  63. 
Supervision  of  banks  by  Connecticut, 

83,  127,  138. 

Taxation  in  1792,  28. 

Terry,  Nathaniel,  34,  85,  94,  loi ;  elect- 
ed president,  125  ;  sketch  of,  126  ;  re- 
tired, 131. 

Times,  Hartford,  The,  49,  53,  104. 

Tisdall,  Thomas,  sketch  of,  49. 

Trumbull,  John,  15,  17,  34;  sketch  of,  42. 

Trumbull,  Joseph,  president,  131  ; 
sketch  of,  131,  139,  140,  142,  145,  147. 

Turnpike,  Hartford  and  New  Haven, 
96  ;  turnpikes  in  1839,  151. 

Union  Bank,  9,  82. 

United  States  debt  to  Connecticut,  81. 

"Wadsworth,  Daniel,  34,  51  ;  sketch 
of,  54- 

"Wadsworth,  Jeremiah,  16,  19,  20,  31  ; 
sketch  of,  32,  37,  47,  48,  50,  S3,  54,  55, 
59,  90,  97,  126. 

War  of  1812,  III  ;  bank  mania  in  Penn- 
sylvania, 112  ;  excessive  issues  of 
paper  currency,  113  ;  New  England 


escapes  the  craze,  113  ;  unpopularity 
of  the  war  in  New  England,  113  ; 
conservative  course  of  her  banks, 
114  ;  which  attracts  coin,.  114  ;  sus- 
pension elsewhere,  115  ;  post-notes 
authorized,  115  ;  peace,  116  ;  subse- 
quent injurious  effects  upon  New 
England,  119. 

Washington,  George,  13,  22,  27,  32. 

Watkinson,  David,  117,  139,  142. 

Watson,  James,  20  ;  sketch  of,  38. 

Webster,  Noah,  15,  17  ;  sketch  of,  49,  60. 

Western  Reserve  of  Ohio,  48,  69  ;  sp)ec- 
ulators'  scheme  for  the  sale  of,  70 ; 
sale  comsummated,  70  ;  terms,  71  ; 
difficulties  thicken,  72  ;  uncertainty 
of  titles,  72  ;  controversy  closed,  72  ; 
migration  from  Connecticut,  73  ;  in- 
fluence of  transplanting  on  the  Pu- 
ritan stock,  74. 

West  India  trade,  91. 

Whiting,  Spencer,  91. 

Williams,  Ezekiel,  Jr.,  sketch  of,  52  ; 
82  ;  organizes  local  marine  insur- 
ance, 90,  91,  97. 

Woodward,  George,  77. 

Woodward,  Joseph  G.,  60. 

Wolcott,  Oliver,  104,  105. 

Yale  College,  34,  35,  38,  40,  42,  44,  45,  52, 
100,  loi,  103,  105,  126,  131. 


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